Problem #1: The AWIT Corporation is maintaining a branch in Baguio. During the year, the home office shipped goods to the branch at a cost of ₱120,000. The branch submitted to the home office the following report summarizing its operations for the period ended December 31, 2020. Sales (30% on account) ₱196,000 Expenses (50% of which still unpaid) 50,000 Purchases 25,000 Shipments from Home Office 150,000 Inventory, 1/1/2020 (30% from outsiders) 30,000 Inventory, 12/31/2020 (60% from Home Office) 90,000 Remittance to Home Office 60,000 The branch Cost of Sales and Net Income/Loss in as far as the home office is concerned are:
Problem #1: The AWIT Corporation is maintaining a branch in Baguio. During the year, the home office shipped goods to the branch at a cost of ₱120,000. The branch submitted to the home office the following report summarizing its operations for the period ended December 31, 2020. Sales (30% on account) ₱196,000 Expenses (50% of which still unpaid) 50,000 Purchases 25,000 Shipments from Home Office 150,000 Inventory, 1/1/2020 (30% from outsiders) 30,000 Inventory, 12/31/2020 (60% from Home Office) 90,000 Remittance to Home Office 60,000 The branch Cost of Sales and Net Income/Loss in as far as the home office is concerned are:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem #1:
The AWIT Corporation is maintaining a branch in Baguio. During the year, the home
office shipped goods to the branch at a cost of ₱120,000. The branch submitted to the
home office the following report summarizing its operations for the period ended
December 31, 2020.
Sales (30% on account) ₱196,000
Expenses (50% of which still unpaid) 50,000
Purchases 25,000
Shipments from Home Office 150,000
Inventory, 1/1/2020 (30% from outsiders) 30,000
Inventory, 12/31/2020 (60% from Home Office) 90,000
Remittance to Home Office 60,000
The branch Cost of Sales and Net Income/Loss in as far as the home office is
concerned are:
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