Rana has a new branch in Dana mall. The following transactions extracted from the company and the
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Question:
Rana has a new branch in Dana mall. The following transactions extracted from the company and the branch records during May
The company invested $ cash in one of its new branch.
The branch purchases $ of merchandise from supplier on account.
Equipment was acquired by the Branch for $ to be carried in home office accounting records.
The branch paid $ from its account payable balance.
The company paid $ cash on behalf of the branch to the supplier.
The company shipped merchandise to the branch costs $
Credit sales by branch amounted to $ and the cost of goods sold was $
Operating expenses incurred by the home office and charged to the branch totaled $
The branch collects $ of its receivables.
The branch remitted transfer $ cash to the company.
The branch paid operating expenses of $
Additional information:
The Company records shows the following balances:
Inventories ; Common stock ; operating expenses ; returned earnings at the beginning ; Cash ; Building accumulated depreciation ; Account receivables ; Dividends ; Sales ; Buildings ; Accounts Payable ; COGS
Instruction:
Prepare the working paper for the home office to Consolidate the Financial Statements.
Prepare the closing entries in both the company and the branch.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: