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The HO ships merchandise to its branch at 20% above cost. The branch books show a beginning inventory of HO merchandise of P30,000 and shipments from HO of P180,000. Question 8 What is the balance before closing in the Allowance for Overvaluation of Branch Inventory account?

The HO ships merchandise to its branch at 20% above cost. The branch books show a beginning inventory of HO merchandise of P30,000 and shipments from HO of P180,000. Question 8 What is the balance before closing in the Allowance for Overvaluation of Branch Inventory account?

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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Please ANSWER ASAP. I really need help. Show your solution, don’t use excel.
The HO ships merchandise to its branch at 20% above cost. The branch books show a beginning inventory of HO merchandise of P30,000 and shipments from HO of P180,000. Question 8 What is the balance before closing in the Allowance for Overvaluation of Branch Inventory account? The HO ships merchandise to the branch at 25% above cost. The balance before closing in the Intercompany Inventory Profit account is P66,000 and Shipments from HO amounted to P300,000. Question 9= What was the cost of the branch inventory? ====== The HO ships merchandise to the branch at 50% above cost. On its books the balance shows a beginning inventory of HO merchandise amounting to P15,000 and shipments from HO of P110,000. Its ending inventory of HO merchandise is P5,000. Question 10= What amount should the HO adjust the allowance for overvaluation of branch inventory account? A home office ships inventory to its branch at an amount above cost. By year-end, 75 percent of the inventory shipped to the branch has been resold to outsiders. Question 11= What entry must be made by the home office to record the inter-company realized profit during the year? Question 12 = How is the realized inter-company profit determined?
Transcribed Image Text:The HO ships merchandise to its branch at 20% above cost. The branch books show a beginning inventory of HO merchandise of P30,000 and shipments from HO of P180,000. Question 8 What is the balance before closing in the Allowance for Overvaluation of Branch Inventory account? The HO ships merchandise to the branch at 25% above cost. The balance before closing in the Intercompany Inventory Profit account is P66,000 and Shipments from HO amounted to P300,000. Question 9= What was the cost of the branch inventory? ====== The HO ships merchandise to the branch at 50% above cost. On its books the balance shows a beginning inventory of HO merchandise amounting to P15,000 and shipments from HO of P110,000. Its ending inventory of HO merchandise is P5,000. Question 10= What amount should the HO adjust the allowance for overvaluation of branch inventory account? A home office ships inventory to its branch at an amount above cost. By year-end, 75 percent of the inventory shipped to the branch has been resold to outsiders. Question 11= What entry must be made by the home office to record the inter-company realized profit during the year? Question 12 = How is the realized inter-company profit determined?
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