Show the solution in good accounting form. Thank you! Main Corporation has operated a branch in Cavite for one year. Shipments are billed to the branch at cost. The branch carries its own accounts receivable, makes its own collections, and pays its own expenses. The branch reported an inventory on December 31, 2021: Outsiders, P3,391; Home office, P7,625 The transactions for the year are given effect to in the trial balance below: (see photo attached) 1. Determine the net profit of the Cavite Branch for 2021. 2. Using the same information above, determine the branch current account in the Home Office books on January 1, 2022. 3. Using the same information above, shipments to the Branch account in the Home Office books on January 1, 2022.
Show the solution in good accounting form. Thank you! Main Corporation has operated a branch in Cavite for one year. Shipments are billed to the branch at cost. The branch carries its own accounts receivable, makes its own collections, and pays its own expenses. The branch reported an inventory on December 31, 2021: Outsiders, P3,391; Home office, P7,625 The transactions for the year are given effect to in the trial balance below: (see photo attached) 1. Determine the net profit of the Cavite Branch for 2021. 2. Using the same information above, determine the branch current account in the Home Office books on January 1, 2022. 3. Using the same information above, shipments to the Branch account in the Home Office books on January 1, 2022.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Show the solution in good accounting form. Thank you!
Main Corporation has operated a branch in Cavite for one year. Shipments are billed to the branch at cost. The branch carries its own
1. Determine the net profit of the Cavite Branch for 2021.
2. Using the same information above, determine the branch current account in the Home Office books on January 1, 2022.
3. Using the same information above, shipments to the Branch account in the Home Office books on January 1, 2022.
Transcribed Image Text:Debit
P 5,040
Accounts
Credit
Cash.
Home Office Current
P 21,000
25,000
56,216
15,360
7,500
Purchases from outsiders
Shipments from Home Office
Accounts receivable .
Expenses .
Interest expense.
Gain on sale of equipment.
684
8,800
Sales.
80,000
P109.800
P109.800
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