A reconciliation of the Branch Account and Home Office account carried in the branch's books shows the
Question:
A reconciliation of the Branch Account and Home Office account carried in the branch's books shows the following discrepancies at December 31, 2019.
The investment in Brach account in the home office books had a DEBIT balance of $129,000 at December 31, 2019. The reciprocal accounts were in agreement at the beginning of year.
The branch has not taken up $2700 covered by a debit memo from the HO as share in advertising expense.
A credit memo from HO for $900 was taken by branch as $1080
A charge by branch of $1650 for an advance taken by the president when he visited the branch has not yet been recorded by the home office.
What is the unadjusted balance of Home Office Account in the branch books at end of year?
What is the adjusted balance of reciprocal accounts?
Auditing and Assurance services an integrated approach
ISBN: 978-0132575959
14th Edition
Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley