Use the following information for questions 4 and 5.Presented below are items taken from the unadjusted trial balance ofProgressive Company and its branch on December 31, 20x5.Home OfficeBranchВooksВooksP 360,000119,880Shipments to branchAllowance for overvaluation of branch inventoryShipments from home officePurchases (from outsiders)Merchandise inventory, January 1Merchandise inventory, December 31SalesP 468,000173,52065,52058,500648.00061,200ExpensesIt is the company's policy to bill all branches for merchandise shipments at30% above cost.How much of the branch inventory on January represents purchases fromoutsiders?4.5. Assuming that the branch ending inventory acquired from home office is P46,800 at billed price, what is the net income (loss) of the branch insofaras the home office is concerned?

Answer - Part 4 - Calculation of branch Inventory on January from Outsiders : Particulars…

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?

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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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