GOVERNMENTPO.docx - HOME OFFICE BRANCH 1 On x7 the branch...

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HOME OFFICE BRANCH 1. On December 31, 20x7, the branch manager of Hokage Company submitted the following data to its home office in Hidden Leaf Village. Sales P 195,000 Shipment from Home Office 135,000 Accounts Receivable, Jan. 1, 20x7 50,000 Accounts Receivable, Dec. 31, 20x2 59,000 Accounts written of 1,500 Petty cash fund 6,000 Inventory, Jan. 1, 20x7 40,000 Inventory, Dec. 31, 20x7 44,000 Expenses (charged by Home Office) 50,000 All cash collected on accounts receivable are remitted to the Home Office. The balance of the Home Office current account on Jan. 1, 20x7 is: a. P96,00 c. P85,800 b. P97,500 d. None of the above 2. Refer to No. 1, on Dec.31, 20x7, what was left in Hokage Company Home current account? 3. On August 1, 20xx, Da-ice Company established an agency in Tokyo, Japan. During the month of August, the agency reported to the home office sales order. These were billed at P100,000 which P20,000 was collected. The agency paid expenses of P14,200 but was reimbursed by the home office. What is the net income of the agency for the month of August if the estimated gross profit on the goods ship to fill the agency sales order is 30% of cost? 4. Di Ko Alam Company, established a branch at Di Makita City on July 1. 20bb. During the month, Di Ko Alam shipped merchandise to the branch located at Di Makita City at 30% above cost. The shipment costs $500,000. What is the amount charged to the Allowance for Overvaluation of Di Ko Alam Home Office?
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