The following information is extracted from the books and records of Elaine Company and its branch. The balances are December 31, 2012 of the company's operations. Home Office Branch P260,000 Sales Shipments to branch Shipments from home office Purchases P 78,000 104,000 39,000 78,00D 26,000 Expenses Inventory, January 1, 2012 Allowance for overvaluation of branch inventory 31,200 However, no shipments 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 outsiders acquired from the home office in the amount of P26,000 and P7,800 acquired from outsiders for a total of P33,800.
The following information is extracted from the books and records of Elaine Company and its branch. The balances are December 31, 2012 of the company's operations. Home Office Branch P260,000 Sales Shipments to branch Shipments from home office Purchases P 78,000 104,000 39,000 78,00D 26,000 Expenses Inventory, January 1, 2012 Allowance for overvaluation of branch inventory 31,200 However, no shipments 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 outsiders acquired from the home office in the amount of P26,000 and P7,800 acquired from outsiders for a total of P33,800.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
What is the realized profit in branch inventory?
Transcribed Image Text:The following information is extracted from the books and records of Elaine Company and its branch. The balances are at
December 31, 2012 of the company's operations.
Home Office
Branch
Sales
P260,000
P 78,000
Shipments to branch
Shipments from home office
Purchases
104,000
39,000
78,00D
26,000
Expenses
Inventory, January 1, 2012
Allowance for overvaluation of branch inventory
31,200
However, no shipments in transit between home office and the branch were made. Both shipments accounts are
properly recorded. The ending inventory includes merdhandise acquired from the home office in the amount of
P26,000 and P7,800 acquired from outsiders acquired from the home office in the amount of P26,000 and P7,800
acquired from outsiders for a total of P33,800.
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