Branch income 116900 3 reconciliation statement home

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Branch income 116,900 (3) Reconciliation Statement Home Office Books Branch Books ( Investment in Branch) (Home Office) Unadjusted balances, 12/31 P 206,344 P 140,974 Error in recording remittance to branch 20,000 Shipment in transit 57,600 Expenses charged to branch 8,100 Branch net income 116,990 116,990 Freight erroneously charged to branch ( 470) Cash remittance in transit to HO ( 19,200 ) Adjusted balances, 12/31 P 323,664 P 323,664 Problem 12-1111 a. P 2,000 Sales (P 27,000 + P 33,000 + P 26,000) …………………. P 86,000 Cost of Goods Sold (P 36,000 + P 18,000) ………………. (54,000) Gross Profit ……………………………………………… P 32,000 Rent Expense …………………………………………….. P 4,000 Property Tax Expense …………………………………… 5,000 Depreciation Expense …………………………………… 4,000 Miscellaneous Expense …………………………………. 11,000 General Corporate Expense ……………………………… 6,000 (30,000) Net Income ……………………………………………… P 2,000 b. P 180,000 Initial Transfers …………………………………………. P 188,000 14
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June Inventory Shipment ……………………………….. 18,000 Property Tax Payment ………………………………….. 5,000 September Inventory Shipment ………………………… 26,000 Expense Allocation …………………………………….. 6,000 Cash Transfer …………………………………………... (63,000) Balance in Home Office/Branch Accounts (correct) ….. P 180,000 c. Journal Entries – Tarlac Branch 1/10/08 Cash …………………………………. 30,000 Inventory ……………………………. 36,000 Equipment …………………………… 122,000 Home Office …………………… 188,000 1/20/08 Rent Expense ………………………… 4,000 Cash ……………………………. 4,000 2/1/08 Cash ………………………………….. 27,000 Sales …………………………… 27,000 Cost of Goods Sold ………………….. 18,000 Inventory ………………………. 18,000 4/1/08 Cash …………………………………. 33,000 Sales …………………………... 33,000 Cost of Goods Sold …………………. 18,000 Inventory ……………………… 18,000 5/1/08 Miscellaneous Expenses ……………. 7,000 Cash …………………………... 7,000 6/5/08 Inventory ……………………………. 18,000 Home office …………………... 18,000 7/6/08 Property Tax Expense ………………. 5,000 Home Office ………………….. 5,000 9/9/08 Inventory …………………………… 26,000 Home Office …………………. 26,000 10/1/08 Cash ………………………………… 26,000 Sales …………………………. 26,000 Cost of Goods Sold ……………….. 18,000 Inventory …………………….. 18,000 11/1/08 Miscellaneous Expenses …………... 4,000 Cash …………………………. 4,000 12/22/08 Home Office ……………………… 63,000 Cash …………………………. 63,000 12/31/08 Depreciation Expense ……………. 4,000 Accumulated depreciation ….. 4,000 12/31/08 General Corporate Expenses ……… 6,000 Home Office ………………….. 6,000 15
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d. TARLAC BRANCH Balance Sheet December 31, 2008 Assets Cash …………………………………………….
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