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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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PQR operates a branch in Baguio City. The following information are provided for 2021:
Home Office
Branch
Inventories, Beg
85,000
Branch (acquired from outsiders)
9,500
Branch (acquired from Home office)
billed price 20% above cost
42,000
Inventories, End
65,000
Branch (acquired from outsiders)
6,500
Branch (acquired from Home office)
acquired at 2021, billed price
30,000
Sales
365,000
174,500
Shipment to branch
90,000
Purchase from outsiders
220,000
35,000
Advertising Expenses
13,700
2,500
Salaries Expense
25,000
9,500
Rent Expense
10,000
2,000
Miscellaneous Expense
3,300
500
Shipment from Home Office
112,500
REQUIREMENT:Compute the combined net income.
Transcribed Image Text:PQR operates a branch in Baguio City. The following information are provided for 2021: Home Office Branch Inventories, Beg 85,000 Branch (acquired from outsiders) 9,500 Branch (acquired from Home office) billed price 20% above cost 42,000 Inventories, End 65,000 Branch (acquired from outsiders) 6,500 Branch (acquired from Home office) acquired at 2021, billed price 30,000 Sales 365,000 174,500 Shipment to branch 90,000 Purchase from outsiders 220,000 35,000 Advertising Expenses 13,700 2,500 Salaries Expense 25,000 9,500 Rent Expense 10,000 2,000 Miscellaneous Expense 3,300 500 Shipment from Home Office 112,500 REQUIREMENT:Compute the combined net income.
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