The following information are extracted from the books and records of MNO and its branch. The balances for December 31, 2021 are as follows:BranchHome OfficeAllowance for overvaluation of branch inventoryInventory, BegExpensesPurchases31,20026,00078,00039,000Sales260,000Shipment to BranchShipment from home Office78,000104,000However, no shipment in transit between home office and the branch were made. Both shipments accounts are properly recorded. The endinginventory includes merchandise acquired from the home office in the amount of P26,000 and P7,800 acquired from the home office in the amountof 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 thebranch.

In accounting the process of maintaining separate accounts for branches of an entity. In 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 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

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 14RE: Refer to the information provided in RE8-4. If Paul Corporations inventory at January 1, 2019, had a...

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Question

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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