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PAUL Trading Co. has a branch in Quezon City. On December 31, 2019, Quezon City Branch account in the home office books showed a balance of P338,655. The interoffice accounts were the same at the beginning of the year. For purposed of reconciling the reciprocal accounts, the following facts were ascertained: a. The home office inadvertently recorded a remittance for P4,800 from its Bacolod Branch as a remittance from its Quezon City branch. b. The branch failed to take up a P850 debit memo from the home office representing the share of the branch in marketing expense c. Home office credit memo representing a discount on merchandise for P1,200 was not recorded by the branch d. Advertising expense of P1,225 charge by the home office was taken up twice by the branch e. Freight charge on merchandise made by the home office for P1,125 was recorded in the branch books as P1,215 f. An equipment costing the home office P2,500 was picked up by the branch as P250

PAUL Trading Co. has a branch in Quezon City. On December 31, 2019, Quezon City Branch account in the home office books showed a balance of P338,655. The interoffice accounts were the same at the beginning of the year. For purposed of reconciling the reciprocal accounts, the following facts were ascertained: a. The home office inadvertently recorded a remittance for P4,800 from its Bacolod Branch as a remittance from its Quezon City branch. b. The branch failed to take up a P850 debit memo from the home office representing the share of the branch in marketing expense c. Home office credit memo representing a discount on merchandise for P1,200 was not recorded by the branch d. Advertising expense of P1,225 charge by the home office was taken up twice by the branch e. Freight charge on merchandise made by the home office for P1,125 was recorded in the branch books as P1,215 f. An equipment costing the home office P2,500 was picked up by the branch as P250

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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PAUL Trading Co. has a branch in Quezon City. On December 31, 2019, Quezon City Branch account in the home office books showed a balance of P338,655. The interoffice accounts were the same at the beginning of the year. For purposed of reconciling the reciprocal accounts, the following facts were ascertained: a. The home office inadvertently recorded a remittance for P4,800 from its Bacolod Branch as a remittance from its Quezon City branch. b. The branch failed to take up a P850 debit memo from the home office representing the share of the branch in marketing expense c. Home office credit memo representing a discount on merchandise for P1,200 was not recorded by the branch d. Advertising expense of P1,225 charge by the home office was taken up twice by the branch e. Freight charge on merchandise made by the home office for P1,125 was recorded in the branch books as P1,215 f. An equipment costing the home office P2,500 was picked up by the branch as P250
Transcribed Image Text:PAUL Trading Co. has a branch in Quezon City. On December 31, 2019, Quezon City Branch account in the home office books showed a balance of P338,655. The interoffice accounts were the same at the beginning of the year. For purposed of reconciling the reciprocal accounts, the following facts were ascertained: a. The home office inadvertently recorded a remittance for P4,800 from its Bacolod Branch as a remittance from its Quezon City branch. b. The branch failed to take up a P850 debit memo from the home office representing the share of the branch in marketing expense c. Home office credit memo representing a discount on merchandise for P1,200 was not recorded by the branch d. Advertising expense of P1,225 charge by the home office was taken up twice by the branch e. Freight charge on merchandise made by the home office for P1,125 was recorded in the branch books as P1,215 f. An equipment costing the home office P2,500 was picked up by the branch as P250
24. What is the net adjustment in the Branch Current account for the year 2019? a. 4,800 debit b. 4,800 credit c. 4,890 debit d. 4,890 credit 25. What is the net adjustment in the Home Office Current account for the year 2019? a. 585 debit c. 495 debit d. 495 credit b. 585 credit 26. What is the adjusted balance of the reciprocal accounts on December 31, 2019? a. 333,855 b.343,545 c.333,765 d. 343,455 27. What is the unadjusted balance of the home office account on December 31, 2019 a. 341,040 c.342.870 d. 344,490 b. 342,330
Transcribed Image Text:24. What is the net adjustment in the Branch Current account for the year 2019? a. 4,800 debit b. 4,800 credit c. 4,890 debit d. 4,890 credit 25. What is the net adjustment in the Home Office Current account for the year 2019? a. 585 debit c. 495 debit d. 495 credit b. 585 credit 26. What is the adjusted balance of the reciprocal accounts on December 31, 2019? a. 333,855 b.343,545 c.333,765 d. 343,455 27. What is the unadjusted balance of the home office account on December 31, 2019 a. 341,040 c.342.870 d. 344,490 b. 342,330
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