Selected accounts from the December 31, 2021 trial balances of DEF Corp. and its branch follow: DEF Corp. B Branch Sales Purchases Expenses (550,000) 380,000 104,000 (310,000) 50,000 58,100 Beg. Inventory 46,000 116,600 23,100 Branch Current Shipment from Home Office Freight in 209,000 15,000 11,000 Home Office Current (106,600) Shipment to branch Branch merchandise markup (200,000) (22,000) As of December 31, 2021, a shipment with a billing price of P11,000 was in transit to the branch. Freight cost, is always 5% of the billing price. Merchandise on hand at year-end were: at home office , P64,000 at cost; at branch P33,000 at billing price and P15,000 purchased from outsiders. Compute the combined net income for 2021.
Selected accounts from the December 31, 2021 trial balances of DEF Corp. and its branch follow: DEF Corp. B Branch Sales Purchases Expenses (550,000) 380,000 104,000 (310,000) 50,000 58,100 Beg. Inventory 46,000 116,600 23,100 Branch Current Shipment from Home Office Freight in 209,000 15,000 11,000 Home Office Current (106,600) Shipment to branch Branch merchandise markup (200,000) (22,000) As of December 31, 2021, a shipment with a billing price of P11,000 was in transit to the branch. Freight cost, is always 5% of the billing price. Merchandise on hand at year-end were: at home office , P64,000 at cost; at branch P33,000 at billing price and P15,000 purchased from outsiders. Compute the combined net income for 2021.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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DEF Corp.
Transcribed Image Text:Selected accounts from the December 31, 2021 trial balances of DEF Corp. and its branch follow:
DEF Corp.
(550,000)
380,000
B Branch
Sales
(310,000)
Purchases
50,000
Expenses
104,000
58,100
Beg. Inventory
46,000
116,600
23,100
Branch Current
Shipment from Home Office
Freight in
Home Office Current
Shipment to branch
Branch merchandise markup
209,000
15,000
11,000
(106,600)
(200,000)
(22,000)
As of December 31, 2021, a shipment with a billing price of P11,000 was in transit to the branch. Freight cost, is
always 5% of the billing price. Merchandise on hand at year-end were: at home office , P64,000 at cost; at branch
P33,000 at billing price and P15,000 purchased from outsiders. Compute the combined net income for 2021.
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