Determine the correct balance for the reciprocal accounts as of December 31. 

Prepare adjusting entries for both parties as of December 31, 2017 to properly record these inter company accounts
 

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PROBLEM 1 HO transferred merchandise to Branch A at cost of P50,000. Home office paid the freight of P2,000 on the transfer. Subsequently HO ordered the transfer of the merchandise to Branch B. Branch A paid P3,000 to transfer the merchandise If transfer would have been from the HO to Brach B. freight would have cost only P3,500. Date of first transfer Date of re- transfer to new branch Branch A Branch B Home office PROBLEM 2 were On September 1. 2018 BETTER IN TIME Co established two branches Manila and Quezon City. Branches The home office transferred P80,000 worth of cash and P350,000 worth of inventory to its Manila Branch and instructed Manila to transfer 3/4 of the goods and cash received to Quezon City. In addition on November 1,2018 shipments from the home office were received by Manila amounting to P125,000 and the branch paid freight costs amounting to P6,500 3/5 of the said shipments sold to outsiders On December 1, 2018 Manila transferred half of the remaining November shipments from the home office to Quezon City, with the Quezon City branch paying freight costs of P2,500 Had the merchandise been shipped from the home office to Quezon City branch only P1.900 worth of freight would had been incurred. Journalize the above transactions in the books of the branches and the home office PROBLEM 1 HO transferred merchandise to Branch A at cost of P50,000. Home office paid the freight of P2,000 on the transfer. Subsequently HO ordered the transfer of the merchandise to Branch B. Branch A paid P3,000 to transfer the merchandise If transfer would have been from the HO to Brach B. freight would have cost only P3,500. Date of first transfer Date of re- transfer to new branch Branch A Branch B Home office PROBLEM 2 were On September 1. 2018 BETTER IN TIME Co established two branches Manila and Quezon City. Branches The home office transferred P80,000 worth of cash and P350,000 worth of inventory to its Manila Branch and instructed Manila to transfer 3/4 of the goods and cash received to Quezon City. In addition on November 1,2018 shipments from the home office were received by Manila amounting to P125,000 and the branch paid freight costs amounting to P6,500 3/5 of the said shipments sold to outsiders On December 1, 2018 Manila transferred half of the remaining November shipments from the home office to Quezon City, with the Quezon City branch paying freight costs of P2,500 Had the merchandise been shipped from the home office to Quezon City branch only P1.900 worth of freight would had been incurred. Journalize the above transactions in the books of the branches and the home office

Answer rating: 100% (QA)

Problem 1 1 The table includes columns for Branch A Branch B and Home Office as well as rows for Date of first transfer and Date of retransfer to new branch Based on the details provided heres how Id ... View the full answer