Please do not give solution in image format thanku P-1 A branch of Venell Corporation is on its first year of operations. The following series of activitiessummarize the branch transactions:.a. The home office sends P75,000 to the newly formed branch to start its operations.b. The home office shipped merchandise, with a cost of P45,000 to the branch.c. The branch purchased P60,000 worth of merchandise from outside suppliers.d. The home office transfers delivery equipment with a book value of P75,000 to the branch forPhp 90,000. The home office pays transportation charges of P3,000:e. The branch sells P112,500 worth of merchandise.f. The home office pays P3,750 of expenses applicable to the branch but has not charged thebranch for them.g. The branch records depreciation of P9,000 on the delivery equipment.h. The branch incurs and records P22,500 of selling and administrative expense.i. The branch remits P52,500 to the home office.Required:Journal entries to record the transaction on the books of the home office and on its branch.

Branch accounting: It is a type of system for recording accounting transactions in which the…

Answered: P-1 A branch of Venell Corporation is…

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter24: Recording International And Internet Sales

Section: Chapter Questions

Problem 1AP

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Elizabeth Sales decided to create a branch in Naga City at the start of 20XX. The branch operation had the following transactions during 20XX: 1. Merchandise costing P350,000 and cash of P200,000 were transferred from the home office. 2. The branch purchased on account additional merchandise inventory of P400,000 from other distributors. 3. Sales of P650,000 were made by the branch during the period. The cost of these sales was P425,000. Cash of P600,000 was collected from sales during the year. 4. Advertising costs of P40,000, sales commissions of P65,000, and other operating expenses of P45,000 were incurred and paid by the branch. 5. The branch paid P370,000 on account to other distributors and remitted P120,000 to the home office. Required: 1. Record each of the transactions on the books of the branch. 2. Prepare an income statement for the branch for 20XX. 3. Prepare a balance sheet as of December 31, 20XX, for the branch.
13. AMNESTY PARDON Co. is currently preparing its combined financial statements. At December 31, 20x1, the home office shows a P624,000 balance in its "Investment in branch" account while the branch showed a P280,800 balance in its "Home office" account. The following information has been gathered: (a) The home office shipped merchandise worth P80,000 to the branch during December 20x1 which the latter has received and recorded only in January 20x2. (b) The home office collected P40,000 accounts receivable on behalf of the branch. The branch did not yet receive the credit memo sent by the home office. (c) The branch returned damaged merchandise worth P120,000 to the home office. The home office did not yet receive the debit memo sent by the branch. (d) A remittance of cash collections amounting to P160,000 was not yet recorded by the home office. (e) The home office allocated overhead cost of P20,000 to the branch which the latter has recorded twice. (f) Freight charge of P48,000 paid…
Show the solution in good accounting form 1. Determine the net profit of the Cavite Branch for 2021
Northwest Sales had the following transactions in Year 1: The business was started when it acquired $58,500 cash from the issue of common stock. Northwest purchased $185,000 of merchandise for cash in Year 1. During the year, the company sold merchandise for $198,220. The merchandise cost $109,021. Sales were made under the following terms: a. Cash sales $48,870b. Credit card sales (The credit card company charges a $2.25 percent service fee.) $139,520c. Sales on account $9,830 The company collected all the amount receivable from the credit card company. The company collected $9,044 of accounts receivable. The company paid $40,927 cash for selling and administrative expenses. Determined that 3.75 percent of the ending accounts receivable balance would be uncollectible. Required Show the effects of each of the transactions on the elements of the financial statements, using a horizontal statements model. Use + for increase, − for decrease, and leave blank for not affected. In the…
Question. 1. Mountain High Ice Cream Company transferred $74,000 of accounts receivable to the Prudential Bank. The transfer was made with recourse. Prudential remits 90% of the factored amount to Mountain High and retains 10% to cover sales returns and allowances. The bank charges a 2% fee. Required: Prepare the journal entry to record the transfer on the books of Mountain High
Livro Company has three operating segments with the following information:In addition, corporate headquarters generates revenues of $2,000.What is the minimum amount of revenue that each of these segments must generate to be considered separately reportable?a. $2,900b. $3,200c. $3,300d. $3,400
In the chair sector in which the company operates, it has realized the purchase of 1000 pieces of commercial goods for a price of 100 TL in cash. Make the journal and general ledger entries?
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Jonel Corporation operates a branch in Cebu. In October, the HO shipped P 68,000 merchandise to this branch, which the branch credited the HO account for P 86,000. In November, the branch collected P2,000 HO accounts receivable. The HO was properly notified but debited Investment in Branch account for P 8,000. At the end of the year, the HO paid and recorded a P 12,000 expense for the branch but the branch has not yet made the appropriate entry for this. At year-end, the branch transferred P 50,000 cash to HO but the HO has not yet made the necessary entry. Based on the above, the corrections needed are a. HO to credit its Investment in Branch account for P 48,000, and the Branch to debit the HO account for P 18,000. b. HO to credit its Investment in Branch account for P 60,000 and the Branch to debit the HO account for P6,000 c. HO to credit its Investment in Branch account for P 56,000 and the Branch to debit the HO account for P 6,000. d. HO to credit its Investment in Branch…
Ecru Company has identified five industry segments: plastics, metals, lumber, paper, and finance. It appropriately consolidated each of these segments in producing its annual financial statements. Information describing each segment (in thousands) follows: Sales to outside parties Intersegment transfers Interest income from outside parties Interest income from intersegment loans Operating expenses Interest expense Tangible assets Intangible assets Intersegment loans (debt) Plastics $6,855 163 a. Revenue test: b. Profit or loss test: c. Asset test: 0 0 4,334 82 1,577 93 0 Metals $2,414 185 40 0 1,822 37 3,256 415 0 Lumber $ 741 150 27 0 1, 126 72 584 0 0 Ecru does not allocate its $1,400,000 in common expenses to the various segments. Perform testing procedures to determine Ecru's reportable operating segments. Paper Finance $ 452 162 0 0 684 22 831 69 0 0 48 213 37 108 209 0 718
The accounting staff of Lambert Company has assembled the following information for the year ended December 31 of the current year. Cash sales $ 726,000 Credit sales 2,500,000 Collections on accounts receivable 2,205,000 Cash transferred from the money market fund to the general bank account 250,000 Interest and dividends received 100,000 Purchases (all on account) 1,800,000 Payments on accounts payable to merchandise suppliers 1,530,000 Cash payments for operating expenses (including payroll) 1,065,000 Interest paid 180,000 Income taxes paid 95,000 Loans made to borrowers 500,000 Collections on loans (excluding receipts of interest) 260,000 Cash paid to acquire plant assets 3,100,000 Book value of plant assets sold 651,300 Loss on sales of plant assets 75,200 Proceeds from issuing bonds payable 2,500,000 Dividends paid 120,000 Cash and cash equivalents, Jan. 1 512,000 Required: a. Prepare a statement of cash flows. Use the direct method of reporting cash flows from operating…
Integrity Co. just opened a branch in Baguio City this December 2021. Summary of transactions for the first month of operations follows: 1. Baguio Branch received P20,000 cash from home office to start its operations. 2. Home Office shipped merchandise to the Branch costing P100,000, of which 25% have not yet received by the Branch. 3. Branch purchases from other suppliers amounted to P89,250. 4. Branch sales for the month amounted to P245,000 5. Home Office debit memo for P3,500 representing the Branch's share on advertising expenses was recorded only by the Branch on the 3rd day of January 2022. 6. Branch operating expenses of P61,250 were paid by the Home Office. 7. Branch remitted P40,000 to the Home Office but the Home Office bookkeeper recorded it only in the month of January 2022. 8. The merchandise inventory on hand of the Branch is: From outsiders, P20,000 From Home Office, P30,000 What is the unadjusted balance of the Investment in Branch account, before Net income at…

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