Crest Corporation established its Poblacion branch in 2019. Merchandise costing P120,000 is shipped to this branch. During
Fantastic news! We've Found the answer you've been seeking!
Question:
What is the correct Home Office account balance on the records of the branch? Present solution in good accounting form.
On January 01, 2020 Kit Company, Inc. establishes a branch in Bauang. During the year, Kit Inc. transfers cash and merchandise to the branch worth P15,000 and P45,000 respectively. Freight was paid by the home office worth P1,500 included in the cost of merchandise. The home office also incurred P5,700 expenses of which 30 percent was allocated to the branch. On December 31, 2020, the branch incurred a loss of P4,000.
What is the balance of the branch account as per home office books. Present solution in good accounting form.
At what amount should the Home Office account be credited if merchandise costing P120,000 will be shipped? Present solution in good accounting form.
Related Book For
Principles of Auditing and Other Assurance Services
ISBN: 978-0078025617
19th edition
Authors: Ray Whittington, Kurt Pany
Posted Date: