Determine the consolidated inventory of Hero Company and its Branch for 2017. Determine the consolidated net income
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Determine the consolidated inventory of Hero Company and its Branch for 2017.
Determine the consolidated net income of Hero Company and its Branch for 2017.
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Selected account balances from the December 31, 2017 trial balances of Hero Company and its branch follow: Inventory, January 1, 2017 Investment in Branch Purchases Shipments from Home Office Freight-in Expenses Home Office Current Sales Shipments to Branch Allowance for Overvaluation in Branch Inventory Hero Company Debit (Credit) P 46,000 117,600 380,000 104,000 (310,000) (200,000) (22,000) Branch Debit (Credit) P 23,100 1,000 209,000 10,450 58,100 (106,600) (280,000) As of December 31, 2017, a shipment with a billing price of P11,000 was in transit to the branch. Freight cost, typically 5% of the billing price, is inventoriable. Merchandise on hand at year-end (December 31, 2017) was: at home office, P64,000 at cost; at branch, P33,000 at billing price (excluding freight). The beginning inventory, as shown in the trial balance, includes the corresponding freight. Selected account balances from the December 31, 2017 trial balances of Hero Company and its branch follow: Inventory, January 1, 2017 Investment in Branch Purchases Shipments from Home Office Freight-in Expenses Home Office Current Sales Shipments to Branch Allowance for Overvaluation in Branch Inventory Hero Company Debit (Credit) P 46,000 117,600 380,000 104,000 (310,000) (200,000) (22,000) Branch Debit (Credit) P 23,100 1,000 209,000 10,450 58,100 (106,600) (280,000) As of December 31, 2017, a shipment with a billing price of P11,000 was in transit to the branch. Freight cost, typically 5% of the billing price, is inventoriable. Merchandise on hand at year-end (December 31, 2017) was: at home office, P64,000 at cost; at branch, P33,000 at billing price (excluding freight). The beginning inventory, as shown in the trial balance, includes the corresponding freight.
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The consolidated inventory of Hero Company and its Branch for 2017 is P46000 This is ... View the full answer
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