Presented below are items taken from the unadjusted trial balance of the Company and its branch on December 31, 2021. It is the company’s policy to bill all branches for merchandise shipments at 30% above cost. Determine: a. How much of the branch inventory on January represents purchases from outsiders? b. Assuming that the branch ending inventory acquired from home office is P 46,800 at billed price, what is the net income (loss) of the branch insofar as the home office is concerned?

Q: 5. Presented below are items taken from the unadjusted trial balance of the Company and its branch…

A: Head or home office sends goods to the branches and treats the goods as investment. It is just like…

Q: Home Office Books Branch Books P 360,000 119,880 Shipments to branch Allowance for overvaluation of…

A: Following is the Branch Inventory on January represents purchases from outsiders: Purchases from…

Q: On June 10, Culver Company purchased $8,700 of merchandise on account from Concord Company, FOB…

A: Journal entries are used by the management to record the transactions in the books of accounts.…

Q: January 1, 2021 December 31, 2021 Physical inventory, at cost Net sales Cost of goods sold Accounts…

A: Net Sales: Net sales is the amount after deducting returns, allowances, and discounts  from  gross…

Q: Control Accounts provide J-Quan Ltd with useful information on sales and purchases. At the end of…

A: Sales ledger control account…

Q: Merchandise purchased on terms FOB Shipping Point, was shipped by the supplier on December 31, 2019…

A: calculation of correct amount of inventory as on December 31, 2019 are as follows

Q: Upsilon Inc. began operations in the fourth quarter of 2019. For the first quarter ended March 31,…

A: Cost of Merchandise inventory on January 1, 2020 = Selling price of Merchandise inventory on January…

Q: Home Office Branch Dr. (Cr.) P (3,200,000) Dr. (Cr.) Sales Shipments to branch Shipments from home…

A: Branch accounting refers to a system where separate accounts are maintained for each branch.

Q: Darlington Company entered into the following business events during its first month of operations.…

A: The question is based on the concept of Financial Accounting.

Q: Delta Corp. conducted a physical count on December 31, 2019 which revealed inventory with a cost of…

A: Here in this question, we are required to calculate the inventory value on December 31,2019. Lets…

Q: he trial balance of Novak Corp. at the end of its fiscal year, August 31, 2022, includes these…

A: Cost of Goods Sold (COGS) is a financial accounting term that refers to the direct costs incurred in…

Q: Larkspur Furniture uses a perpetual inventory system and pays GST on an accrual basis. Larkspur…

A: A special journal is used to post those transactions which impact the same set of accounts and have…

Q: On September 14, 2022, Blossom Company sells merchandise valued at $20000 on account to Pacifica…

A: Blossom’s entry on that date is: Account titles and explanation Debit Credit Cash $19400…

Q: What amount should be reported as inventory on December 31, 2021? Fundador Company reported that…

A:

Q: On June 16, 2021, Emily Corporation sold merchandise to Franz Company for P6,000, terms 2/10, n/30.…

A: Periodic inventory system is one of the inventory systems in which all transactions related to…

Q: Indicate which items should be added to (answer: yes) and which items should not be added to…

A: When physical verification of the stock will happen, then there must be some changes to be done in…

Q: Use the following information for items 9-11: Main Corporation has operated a branch in Cavite for…

A: Cavite branch is an Independent branch since the carries its own accounts receivable, makes its own…

Q: On June 16, 2021, Emily Corporation sold merchandise to Franz Company for P6,000, terms 2/10, n/30.…

A: The journal entries are prepared to record day to day transactions of the business.

Q: the Company and its branch on December 31, 2021. It is the company's policy to bill all branches for…

A: Merchandise inventory, which is frequently shortened to "inventory," is the phrase used to describe…

Q: James Company began the month of October with inventory of $33,000. The following inventory…

A: In the Periodic inventory system inventory records are updated periodically at the close of an…

Q: A business A uses periodic inventory system. On Nov 15, 2021, the business A sold merchandise to…

A: Solution: It is assumed that company is using gross method of accounting for purchase and sales.

Q: Bilo-Bilo Company’s inventory at June 30, 2022, was P75,000 based on a physical count of goods…

A: The term inventory refers to both the raw materials utilized in production and the finished goods…

Q: 5. On December 31, 2020, XYZ's fiscal year end, a physical count of inventory revealed an inventory…

A: Inventory is one of the important current asset being used by the business. For purchases and sales…

Q: The following records were taken from the books of the Company and its branch on December 31, 2021:…

A: The FIFO approach, commonly known as First-In, First-Out, is an inventory valuation and cost flow…

Q: The following records were taken from the books of the Company and its branch on December 31, 2021:…

A: FIFO stands for "First-In, First-Out," refers to a technique of inventory valuation used in…

Q: On March 24, 2021, blue Company purchased merchandise with an invoice price of 48,000 and terms of…

A: There is two methods to record discount which are, (1) Net method (2) Gross method We will talk…

Q: On June 30, 2021, Alpha Co.'s Mega branch showed a Home Office account balance of $2,735 and the…

A: Account reconciliation is the process of matching the balance of account in the books of different…

Q: As of January 1, 2020, Sandhill Inc. adopted the retail method of accounting for its merchandise…

A: The basis for the conventional retail inventory approach is the correlation between the cost of a…

Q: Mouse Co. started operations on January 1, 2021. Following data are available as of June 30, 2021:…

A: Accounts receivable indicates the amount owed by customer to the firm for credit sales made to them.…

Q: . The Cherry Company's physical inventory on December 31, 2021 showed that merchandise with a cost…

A: Correct inventory that should appear in Cherry Company's statement of financial position at December…

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.