The following information are extracted from the books and records of MNO and its branch. The balances for December 31, 2021 are as follows: Branch Home Office Allowance for overvaluation of branch inventory Inventory, Beg Expenses Purchases Sales 31,200 26,000 78,000 39,000 260,000 Shipment to Branch Shipment from hame Office 78,000 104,000 However, no shipment in transit between home office and the branch were made. Both shipments accounts are properly recorded. The ending inventory includes merchandise acquired from the home affice in the amount of P26,000 and P7,800 acquired from the home office in the amount of P26,000 and P7,800 acquired from outsiders for a total of P33,800, Compute for the realized inventory profit of home office sales made by the branch.
The following information are extracted from the books and records of MNO and its branch. The balances for December 31, 2021 are as follows: Branch Home Office Allowance for overvaluation of branch inventory Inventory, Beg Expenses Purchases Sales 31,200 26,000 78,000 39,000 260,000 Shipment to Branch Shipment from hame Office 78,000 104,000 However, no shipment in transit between home office and the branch were made. Both shipments accounts are properly recorded. The ending inventory includes merchandise acquired from the home affice in the amount of P26,000 and P7,800 acquired from the home office in the amount of P26,000 and P7,800 acquired from outsiders for a total of P33,800, Compute for the realized inventory profit of home office sales made by the branch.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following information are extracted from the books and records of MNO and its branch. The balances for December 31, 2021 are as follows:
Branch
Home Office
31,200
Allowance for avervaluation of branch inventory
Inventory, Beg
Екрепses
Purchases
26,000
78,000
39,000
Sales
260,000
Shipment to Branch
Shipment from home Office
78,000
104,000
However, no shipment in transit between home office and the branch were made. Both shipments accounts are properly recorded. The ending
inventory includes merchandise acquired from the hone office in the amount of P26,000 and P7,800 acquired from the home office in the amount
of P26,000 and P7,800 acquired from outsiders for a total of P33,800, Compute for the realized inventory profit of home office sales made by the
branch.
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