1. How much is the sales of branch to be included in the combined financial statements?
2. How much is the cost of goods sold of the branch to be included in the combined financial statements?
3. How much is the ending inventory of the branch to be included in the combined financial statements?
4. How much is the true profit of the branch?
5. How much is the adjusted balance of the branch current account immediately prior to combining the financial statements?

Transcribed Image Text:

The following information was taken from the records of a branch: Sales by branch 2,800,000 Beginning inventory Billings to branch by home office Operating expenses Ending inventory at billed price 2,500,000 400,000 1,000,000 The following information was taken from the records of the home office: Branch current account Shipments to branch Allowance for markup - Unadjusted 2,600,000 2,000,000 500,000 The following information was taken from the records of a branch: Sales by branch 2,800,000 Beginning inventory Billings to branch by home office Operating expenses Ending inventory at billed price 2,500,000 400,000 1,000,000 The following information was taken from the records of the home office: Branch current account Shipments to branch Allowance for markup - Unadjusted 2,600,000 2,000,000 500,000

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