Included in the accounting records of the home office and the only branch, respectively, of Hamad Company were the following ledger accounts for June 2020: Investment in Ali Branch Date Explanation Debit Credit Balance 2020 May 31 Balance 51,000 dr June 6 Shipment of merchandise 30,500 81,500 dr 20 Receipt of cash 11,500 70,000 dr 26 Collection of branch trade account receivable 9,000 1 61,000 dr 30 Shipment of merchandise 24,000 2 85,000 dr Home Office Date Explanation Debit Credit Balance 2020 May 31 Balance 51,000 cr June 8 Receipt of merchandise 30,500 81,500 cr 18 Payment of cash 11,500 70,000 cr 27 Acquisition of office equipment 14,500 3 55,500 cr 30 Payment of cash 22,000 4 33,500 cr Instructions: Prepare journal entries on June 30, 2020, for the (1) home office, and (2) Ali Branch of Hamad Company. The branch uses the perpetual inventory system.

Included in the accounting records of the home office and the only branch, respectively, of Hamad Company were the following ledger accounts for June 2020: Investment in Ali Branch Date Explanation Debit Credit Balance 2020 May 31 Balance 51,000 dr June 6 Shipment of merchandise 30,500 81,500 dr 20 Receipt of cash 11,500 70,000 dr 26 Collection of branch trade account receivable 9,000 1 61,000 dr 30 Shipment of merchandise 24,000 2 85,000 dr Home Office Date Explanation Debit Credit Balance 2020 May 31 Balance 51,000 cr June 8 Receipt of merchandise 30,500 81,500 cr 18 Payment of cash 11,500 70,000 cr 27 Acquisition of office equipment 14,500 3 55,500 cr 30 Payment of cash 22,000 4 33,500 cr Instructions: Prepare journal entries on June 30, 2020, for the (1) home office, and (2) Ali Branch of Hamad Company. The branch uses the perpetual inventory system.

Managerial Accounting: The Cornerstone of Business Decision-Making

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Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

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Included in the accounting records of the home office and the only branch, respectively, of Hamad Company were the following ledger accounts for June 2020:

	Investment in Ali Branch
Date	Explanation	Debit	Credit	Balance
	2020
	May 31	Balance			51,000 dr
	June 6	Shipment of merchandise	30,500		81,500 dr
	20	Receipt of cash		11,500	70,000 dr
	26	Collection of branch trade account receivable		9,000 ¹	61,000 dr
	30	Shipment of merchandise	24,000 ²		85,000 dr

	Home Office
	Date	Explanation	Debit	Credit	Balance
	2020
	May 31	Balance			51,000 cr
	June 8	Receipt of merchandise		30,500	81,500 cr
	18	Payment of cash	11,500		70,000 cr
	27	Acquisition of office equipment	14,500 ³		55,500 cr
	30	Payment of cash	22,000 ⁴		33,500 cr

Instructions:

Prepare journal entries on June 30, 2020, for the (1) home office, and (2) Ali Branch of Hamad Company. The branch uses the perpetual inventory system.

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