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CHAPTER-11-GUERRERO-ADVAC PDF.pdf - CHAPTER 11 MULTIPLE...

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1CHAPTER 11MULTIPLE CHOICES - COMPUTATIONAL12-1:d.This is recorded when the working fund is replenished.12-2:c.SalesP700,000Cost of goods sold:PurchasesP800,000Merchandise inventory, end180,000620,000Gross profitP80,000Expenses198,000Net income (loss)P (118,000)12-3:bSalesP70,000Cost of goods sold (P70,000 / 140%)50,000Gross profitP20,000Less:Samples (P8,000P6,000)P2,000Expenses2,8004,800Net incomeP15,20012-4:aSalesP100,000Cost of goods sold72,000Gross profitP28,000Expenses (P9,000 + P4,500)13,500Net incomeP14,50012-5:a12-6:a12-7:c12-8aShipment of merchandise to home officeP80,000Equipment sent to home office50,000Expenses assigned to branch by the home office8,000Cash remittance to home office(40,000)Home office account balanceP98,000
212-9:d12-10:aHome Office account balance before closing, Dec. 32, 1008P35,000Net income (loss)SalesP147,000Cost of cost goods soldShipment to branchP135,000Inventory, 12/3118,500116,500Gross profitP30,500Expenses13,50017,000Home Office account balance(Investment in Branch account balance) P52,000Shipment to Branch account has no beginning balance, because this was closed at the endof 2011.12-11: bJan. 1, 2011Jan. 1, 2012Petty cash fundP6,000P6,000Accounts receivable86,00098,000Inventory74,00082,000Home Office account balanceP166,000P186,00012-12: d(Branch Books)(Home Office Books)Home OfficeInvestment in BranchUnadjusted balances, Dec. 31P21,320P38,600Remittance in transit(10,400)Shipment in transit7,280Cash collections of home office(400)Adjusted balances, Dec. 31P28,200P28,20012-13: aUnadjusted balanceInvestment in Branch account, 12/31P430,000Charge for advances by president(5,500)Erroneous entry for merchandise allowance(600)Share in advertising expense(9,000)Unadjusted balanceHome Office account, 12/31P414,900
312-14: a(Branch Books)(Home Office Books)Home OfficeInvestment in BranchUnadjusted balances, 12/31P97,350P84,000Shipment in transit6,150Collection of HO A/R by branch25,000Error in recording of branch profit900Returns of merchandise in transit( 6,400)Adjusted balances, 12/31P103,500P103,50012-15: a(Branch Books)(Home Office Books)Home OfficeInvestment in BranchUnadjusted balancesP27,350P25,550Error in recording shipment to Cavity branch(12,000)Error in recording shipment to Tagaytay branch15,000Branch AR collected by home office(3,600)Merchandise returns in transit( 1,200)Error in recording branch profit( 3,600)Adjusted balancesP23,750P23,75012-16: cUnadjusted balance- Investment in Branch accountP 85,000Remittance in transit(10,000)Shipment in transit(20,000)Expenses allocated(5,000)Error in recording remittance3,000Error in recording shipments(9,000)Unadjusted balanceHome Office accountP 44,000( Branch Books)(HomeOffice Books)Home OfficeInvestment in BranchUnadjusted balances,P 44,000P 85,000Remittance in transit(10,000)Shipment in transit20,000Expenses allocated5,000Unrecorded HO collection ofAR(3,000)Error in recording shipments9,000Adjusted balancesP 75,000P 75,00012-17a(Branch Books)(Home Office Books)Home OfficeInvestment in BranchUnadjusted balancesP 440,000P 496,000Branch AR collected by Home Office(8,000)Shipments in transit32,000Acquisition of furniture(12,000)Merchandise returns(15,000)Cash remittance in transit(5,000)Adjusted balancesP 464,000P 464,000
4PROBLEMSProblem 12-1Home Office BooksBranch Books1.Investment in branch30,000Cash30,000Cash30,000Home office30,0002.Investment in branch

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Term
Fall
Professor
Maxine
Tags
Balance Sheet, Generally Accepted Accounting Principles, cost goods

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