Exercise 4.5, 4.6 and 4.7

n. 2 l iment in Wire Branch 100.000 20.000 Allowance for Oversation of inventories: Wishie Branch To record merchand hoped to branch 18 Equipment Wishine Branch Investment in Witchie Branch To record acquisition of equipment by branch for cash 5.000 Investment in Wilshire Branch - Operating Expenses To record allocation of operating expenses to branch Prepare related journal entries for the Whilshire Branch of Watt Corporation: the branch uses the perpetual inventory system. 148 Part One Acer Preis end hanche (Exercise 4.5) Among the journal entries for business transactions and events of the Hoover Street Branch of Use Company during January 2005, were the following: CHECK FIGURE Man 10 Credit allowance for 60,000 mentories. $12.000 2005 lan 12 nentories Home Office To sad the receipt of merchandise shipped an. 10 from the home office and billed at a map of 20% on billed price 25 Cash Home Othe To record collection of re c eivable of home office Operating Experies Name Ofice To record operating expenses ocated by home office 25.000 25,000 18.000 18,000 Prepare appropriate journal entries for the home office of Use Company (Exercise 4.6) Among the journal entries of the home office of Turbo Company for the month ended August 31, 2005, were the following Aug 6 investment in Udo Branch 10,000 10.000 6.000 5,000 To record payment of count payable of branch 16 Cash Inment in Lido Branch To record collection of trade account a ble of branch 22 quantude Branch i ment in de branch to record branch acoustion of equipment for ch, to be carried in home office ng records 20,000 20,000 (Exercise 4.71 Prepare appropriate journal entries (omit explanations) for Lida Branch of Turbo Company Prepare journal entries in the accounting records of both the home office and the Exeter Brunch of Wardell Company to record each of the following transactions or events Comit explanations Q. Home office transferred ash of $5,000 and merchandise at home office cost of $10,000 to the beach. Both the home office and the branch use the perpetual inventory system. Home office allocated operating expenses of $1,500 to the branch c. Exeter Branch informed the home office that it had collected $416 on a note payable to the home office. Principal amount of the note was $400. Exeter Branch made sales of $12.500, terms 2/10, 1/30, and incurred operating ex penses of $2,500. The cost of goods sold was 58,000, and the operating expenses were paid in cash e Exeter Branch had a net income of $500. (Debit Income Summary in the secounting recoeds of the branch) e related journal entries for the Whilshire Branch of Watt Corporation the branch Derpetual inventory system. antiv for Parmeships and Branches ) Among the journal entries for business transactions and events of the Hoover Street Branch of Use Company during January 2005, were the following: 60.000 60,000 2005 Jan. 12 Inventories Home Office To record the receipt of merchandise shipped Jan. 10 from the home office and biled at a markup of 20% on billed price 25 Cash Home Office To record collection of trade accounts receivable of home office. 31 Operating Expenses Home Office To record operating expenses allocated by home office 25,000 25,000 18,000 18,000 :) Prepare appropriate journal entries for the home office of Use Company Among the journal entries of the home office of Turbo Company for the month ended August 31, 2005, were the following: 10,000 2005 Aug. 6 Investment in Lido Branch Cash To record payment of account payable of branch. 14 Cash Investment in Lido Branch To record collection of trade account receivable of branch 22 Equipment: Udo Branch Investment in Lido Branch To record branch acquisition of equipment for cash, to be carried in home office accounting records 6,000 20,000 20,000 Prepare appropriate journal entries (omit explanations) for Lido Branch of Turbo Company Prepare journal entries in the accounting records of both the home office and the Exeter Branch of Wardell Company to record each of the following transactions or events (omit explanations): a. Home office transferred cash of $5,000 and merchandise at home office cost) of $10,000 to the branch. Both the home office and the branch use the perpetual inventory system 6. Home office allocated operating expenses of $1,500 to the branch. c Exeter Branch informed the home office that it had collected $416 on a note payable to the home office. Principal amount of the note was $400. d. Exeter Branch made sales of $12.500, terms 2/10, n/30, and incurred operating ex- penses of $2,500. The cost of goods sold was $8,000, and the operating expenses were paid in cash. e Exeter Branch had a net income of $500. (Debit Income Summary in the accounting records of the branch.) Prepare related journal entries for the Whilshire Brand uses the perpetual inventory system. 148 Part One Accounting for Parmerships and Branches (Exercise 4.5) Among the journal entries for business trans of Use Company during January 2005, were CHECK FIGURE Jan 10, Credit allowance for overvaluation of inventories, $12.000 2005 Jan. 12 Inventories Home Office To record the receipt of merchandise shi home office and billed at a markup of 2 25 Cash Home Office To record collection of trade accounts re 31 Operating Expenses Home Office To record operating expenses allocated Prepare appropriate journal entries for th (Exercise 4.6) Among the journal entries of the home o August 31, 2005, were the following: 2005 Aug 6 Investment in Lido Branch Cash To record payment of account payable 14 Cash Investment in Lido Branch To record collection of trade account 22 Equipment: Lido Branch Investment in Lido Branch To record branch acquisition of equip carried in home office accounting rece (Exercise 4 Prepare appropriate journal entries (o Company Prepare journal entries in the accounting Branch of Wardell Company to record eac explanations): Q. Home office transferred cash of $5,000 a to the branch. Both the home office and 5 Home office allocated operating expense c. Exeter Branch informed the home office the home office. Principal amount of the d. Exeter Branch made sales of $12.500, penses of $2,500. The cost of goods sol paid in cash. e. Exeter Branch had a net income of $50 records of the branch.)