Use the following information for questions 4 and 5. Presented below are items taken from the unadjusted trial balance of Progressive Company and its branch on December 31, 20x5. Home Office Branch Books Books Shipments to branch Allowance for overvaluation of branch inventory Shipments from home office Purchases (from outsiders) Merchandise inventory, January 1 Merchandise inventory, December 31 Sales P 360,000 119,880 P 468,000 173,520 65,520 58,500 648,000 Expenses 61,200 It is the company's policy to bill all branches for merchandise shipments at 30% above cost. How much of the branch inventory on January represents purchases from outsiders? 4. 5. Assuming that the branch ending inventory acquired from home office is P 46,800 at billed price, what is the net income (loss) of the branch insofar as the home office is concerned?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Use the following information for questions 4 and 5.
Presented below are items taken from the unadjusted trial balance of
Progressive Company and its branch on December 31, 20x5.
Home Office
Branch
Вooks
Вooks
P 360,000
119,880
Shipments to branch
Allowance for overvaluation of branch inventory
Shipments from home office
Purchases (from outsiders)
Merchandise inventory, January 1
Merchandise inventory, December 31
Sales
P 468,000
173,520
65,520
58,500
648.000
61,200
Expenses
It is the company's policy to bill all branches for merchandise shipments at
30% above cost.
How much of the branch inventory on January represents purchases from
outsiders?
4.
5. Assuming that the branch ending inventory acquired from home office is P
46,800 at billed price, what is the net income (loss) of the branch insofar
as the home office is concerned?
Transcribed Image Text:Use the following information for questions 4 and 5. Presented below are items taken from the unadjusted trial balance of Progressive Company and its branch on December 31, 20x5. Home Office Branch Вooks Вooks P 360,000 119,880 Shipments to branch Allowance for overvaluation of branch inventory Shipments from home office Purchases (from outsiders) Merchandise inventory, January 1 Merchandise inventory, December 31 Sales P 468,000 173,520 65,520 58,500 648.000 61,200 Expenses It is the company's policy to bill all branches for merchandise shipments at 30% above cost. How much of the branch inventory on January represents purchases from outsiders? 4. 5. Assuming that the branch ending inventory acquired from home office is P 46,800 at billed price, what is the net income (loss) of the branch insofar as the home office is concerned?
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