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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 31,200 26,000 78,000 39,000 Sales 260,000 Shipment to Branch Shipment from home Office 78,000 104,000

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 31,200 26,000 78,000 39,000 Sales 260,000 Shipment to Branch Shipment from home Office 78,000 104,000

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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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 31,200 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 home 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.
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 Allowance for overvaluation of branch inventory Inventory, Beg Expenses Purchases 31,200 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 home 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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