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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 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.

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.

FINANCIAL ACCOUNTING
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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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.

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
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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