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Prepare the closing entries for the home office including the entry to record the branch profit.

Prepare the closing entries for the home office including the entry to record the branch profit.

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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Problem 8-5 The trial balance of Winston Corporation Home Office and its branch on December 31, 2014 is given as follows: Debits WINSTON CORPORATION Trial Balance December 31, 2014 Cash Accounts receivable Inventory, January 1, 2014 Investment in branch Equipment (net) Purchases Shipments from home office Expenses Totals Home office P 30,000 45,000 37,500 60,000 75,000 450,000 Branch P 6,000 24,000 15,000 120,000 75,000 15,000 P772,500 P180,000
Transcribed Image Text:Problem 8-5 The trial balance of Winston Corporation Home Office and its branch on December 31, 2014 is given as follows: Debits WINSTON CORPORATION Trial Balance December 31, 2014 Cash Accounts receivable Inventory, January 1, 2014 Investment in branch Equipment (net) Purchases Shipments from home office Expenses Totals Home office P 30,000 45,000 37,500 60,000 75,000 450,000 Branch P 6,000 24,000 15,000 120,000 75,000 15,000 P772,500 P180,000
Credits Accounts payable Home office equity Share capital Retained earnings, January 1, 2014 Sales Shipments to branch Totals Inventory, December 31, 2014 Required: P 22,500 P 3,000 60,000 45,000 120,000 465,000 120,000 P772,500 P 90,000 117,000 P180,000 P 60,000 c. Prepare the closing entries for the home office including the entry to record the branch profit.
Transcribed Image Text:Credits Accounts payable Home office equity Share capital Retained earnings, January 1, 2014 Sales Shipments to branch Totals Inventory, December 31, 2014 Required: P 22,500 P 3,000 60,000 45,000 120,000 465,000 120,000 P772,500 P 90,000 117,000 P180,000 P 60,000 c. Prepare the closing entries for the home office including the entry to record the branch profit.
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