CHAPTER 12 - CHAPTER 12 MULTIPLE CHOICE 12-1: 12-2: d. This...

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CHAPTER 12 MULTIPLE CHOICE 12-1: d. This is recorded when the working fund is replenished. 12-2: c. Sales P 700,000 Cost of goods sold: Purchases P800,000 Merchandise inventory, end 180,000 620,000 Gross profit P 80,000 Expenses 198,000 Net income (loss) P (118,000) 12-3: b Sales P 70,000 Cost of goods sold (P70,000 / 140%) 50,000 Gross profit P 20,000 Less: Samples (P8,000 – P6,000) P 2,000 Expenses 2,800 4,800 Net income P 15,200 12-4: a Sales P 100,000 Cost of goods sold 72,000 Gross profit P 28,000 Expenses (P9,000 + P4,500) 13,500 Net income P 14,500 12-5: a 12-6: a 12-7: c 12.8 a Shipment of merchandise to home office P 80,000 Equipment sent to home office 50,000 Expenses assigned to branch by the home office 8,000 Cash remittance to home office (40,000) Home office account balance P 98,000 1
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12-9: d 12-10: a Home Office account balance before closing, Dec. 32, 1008 P 35,000 Net income (loss) Sales P147,000 Cost of cost goods sold Shipment to branch P135,000 Inventory, 12/31 18,500 116,500 Gross profit P 30,500 Expenses 13,500 17,000 Home Office account balance (Investment in Branch account balance ) P 52,000 Shipment to Branch account has no beginning balance, because this was closed at the end of 2008. 12-11: b Jan. 1, 2008 Jan. 1, 2009 Petty cash fund P 6,000 P 6,000 Accounts receivable 86,000 98,000 Inventory 74,000 82,000 Home Office account balance P166,000 P186,000 12-12: d (Branch Books) (Home Office Books) Home Office Investment in Branch Unadjusted balances, Dec. 31 P 21,320 P 38,600 Remittance in transit (10,400) Shipment in transit 7,280 Cash collections of home office ( 400) Adjusted balances, Dec. 31 P 28,200 P 28,200 12-13: a Unadjusted balance – Investment in Branch account, 12/31 P430,000 Charge for advances by president (5,500) Erroneous entry for merchandise allowance ( 600) Share in advertising expense (9,000) Unadjusted balance – Home Office account, 12/31 P414 , 900 2
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12-14: a (Branch Books) (Home Office Books) Home Office Investment in Branch Unadjusted balances, 12/31 P 97,350 P 84,000 Shipment in transit 6,150 Collection of HO A/R by branch 25,000 Error in recording of branch profit 900 Returns of merchandise in transit ( 6,400) Adjusted balances, 12/31 P103,500 P103,500 12-15: a ( Branch Books) (Home Office Books) Home Office Investment in Branch Unadjusted balances P25,550 P27,350 Error in recording shipment to Cavity branch (12,000) Error in recording shipment to Tagaytay branch 15,000 Branch AR collected by home office (3,000) Merchandise returns in transit ( 1,200) Error in recording branch profit ( 3,600 ) Adjusted balances P23,750 P23,750 12-16: c Unadjusted balance- Investment in Branch account P 85,000 Remittance in transit (10,000) Shipment in transit (20,000) Expenses allocated ( 5,000) Error in recording remittance 3,000 Error in recording shipments ( 9,000) Unadjusted balance – Home Office account P 44,000 ( Branch Books) (HomeOffice Books) Home Office Investment in Branch Unadjusted balances, P 44,000
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CHAPTER 12 - CHAPTER 12 MULTIPLE CHOICE 12-1: 12-2: d. This...

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