4.2) On September 1, 2005, Pasadena Company established a branch in San Marino. Folowing are the...

 

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4.2) On September 1, 2005, Pasadena Company established a branch in San Marino. Folowing are the first three transactions between the home office and San Marino branch of Pasadena Сompany: Sept. I Home office sent $10,000 to the branch for an imprest bank account. 2 Home office shipped merchandise costing S60,000 to the branch, billed at a markup of 20% on billed price. 3 Branch acquired office equipment for $3,000, to be carried in the home office accounting records Both the home office and the San Marino branch of Pasadena Company use the perpetual inventory system. Prepare journal entries (omit explanations) for the foregoing transactions: a In the accounting records of the home office. à In the accounting records of the San Marino beunch. kercise(4.3) On September I, 2005, Western Company established the Eastern Branch. Separate ac- counting records were set up for the branch, Both the home office and the Eastern Branch use the periodic inventory system. Among the intracompany transactions were the following: Sept. I Home office mailed a check for $50,000 to the branch. The check was received by the branch on September 3. 4 Home ofice shipped merchandise costing 595,000 to the branch at a billed price of $125,000. The branch received the merchandise on September 8. II The branch acquired a truck for $34,200. The home office maintains the plant assets of the branch in its accounting records. Prepare journal entries (omit explanations) for the foregoing intracompany transactions in the accounting records of (a) the home office and (b) the Eastern Branch. cercise 4.4) Among the journal entries of the home office of Watt Corporation for the month of January 2005, were the following: 2005 Jan 2 hwestment in Wihhre Branch 100.000 Inventories B0,000 Alowance for Overvaluation of imventories: Wistire Branch 20,000 To record merchandise shipped to branch. 18 Equement: Wishire Branch 5,000 mestment in Wishire Branch 5,000 To record acquisition of equipment by branch for cash, 31 Investment in Wikshire Branch Operating Expenses To record alkocation of operating esperses to branch. 6,000 8,000 Prepare related journal entries for the Whilshire Branch of Watt Corporation: the branch uses the perpetual inventory system. 148 Part One Accounang for Parmerships and Branches (Exercise 4.5) Among the journal entries for business transactions and events of the Hoover Stre of Usc Company during January 2005, were the following CHECK FIGURE Jan 10, Credit allowance for 2005 Jan. 12 ventories 60.000 overvaluation of Home Office imventaries, $12,000 To record the receipt of merchandise shipped lan. 10 from the home office and billed at a merkup of 20% on biled price 25 Cash 25.000 Home Office To record collection of trade accounts receivable of home office. 31 Operating Expenses 18,000 Home Office 4.2) On September 1, 2005, Pasadena Company established a branch in San Marino. Folowing are the first three transactions between the home office and San Marino branch of Pasadena Сompany: Sept. I Home office sent $10,000 to the branch for an imprest bank account. 2 Home office shipped merchandise costing S60,000 to the branch, billed at a markup of 20% on billed price. 3 Branch acquired office equipment for $3,000, to be carried in the home office accounting records Both the home office and the San Marino branch of Pasadena Company use the perpetual inventory system. Prepare journal entries (omit explanations) for the foregoing transactions: a In the accounting records of the home office. à In the accounting records of the San Marino beunch. kercise(4.3) On September I, 2005, Western Company established the Eastern Branch. Separate ac- counting records were set up for the branch, Both the home office and the Eastern Branch use the periodic inventory system. Among the intracompany transactions were the following: Sept. I Home office mailed a check for $50,000 to the branch. The check was received by the branch on September 3. 4 Home ofice shipped merchandise costing 595,000 to the branch at a billed price of $125,000. The branch received the merchandise on September 8. II The branch acquired a truck for $34,200. The home office maintains the plant assets of the branch in its accounting records. Prepare journal entries (omit explanations) for the foregoing intracompany transactions in the accounting records of (a) the home office and (b) the Eastern Branch. cercise 4.4) Among the journal entries of the home office of Watt Corporation for the month of January 2005, were the following: 2005 Jan 2 hwestment in Wihhre Branch 100.000 Inventories B0,000 Alowance for Overvaluation of imventories: Wistire Branch 20,000 To record merchandise shipped to branch. 18 Equement: Wishire Branch 5,000 mestment in Wishire Branch 5,000 To record acquisition of equipment by branch for cash, 31 Investment in Wikshire Branch Operating Expenses To record alkocation of operating esperses to branch. 6,000 8,000 Prepare related journal entries for the Whilshire Branch of Watt Corporation: the branch uses the perpetual inventory system. 148 Part One Accounang for Parmerships and Branches (Exercise 4.5) Among the journal entries for business transactions and events of the Hoover Stre of Usc Company during January 2005, were the following CHECK FIGURE Jan 10, Credit allowance for 2005 Jan. 12 ventories 60.000 overvaluation of Home Office imventaries, $12,000 To record the receipt of merchandise shipped lan. 10 from the home office and billed at a merkup of 20% on biled price 25 Cash 25.000 Home Office To record collection of trade accounts receivable of home office. 31 Operating Expenses 18,000 Home Office 4.2) On September 1, 2005, Pasadena Company established a branch in San Marino. Folowing are the first three transactions between the home office and San Marino branch of Pasadena Сompany: Sept. I Home office sent $10,000 to the branch for an imprest bank account. 2 Home office shipped merchandise costing S60,000 to the branch, billed at a markup of 20% on billed price. 3 Branch acquired office equipment for $3,000, to be carried in the home office accounting records Both the home office and the San Marino branch of Pasadena Company use the perpetual inventory system. Prepare journal entries (omit explanations) for the foregoing transactions: a In the accounting records of the home office. à In the accounting records of the San Marino beunch. kercise(4.3) On September I, 2005, Western Company established the Eastern Branch. Separate ac- counting records were set up for the branch, Both the home office and the Eastern Branch use the periodic inventory system. Among the intracompany transactions were the following: Sept. I Home office mailed a check for $50,000 to the branch. The check was received by the branch on September 3. 4 Home ofice shipped merchandise costing 595,000 to the branch at a billed price of $125,000. The branch received the merchandise on September 8. II The branch acquired a truck for $34,200. The home office maintains the plant assets of the branch in its accounting records. Prepare journal entries (omit explanations) for the foregoing intracompany transactions in the accounting records of (a) the home office and (b) the Eastern Branch. cercise 4.4) Among the journal entries of the home office of Watt Corporation for the month of January 2005, were the following: 2005 Jan 2 hwestment in Wihhre Branch 100.000 Inventories B0,000 Alowance for Overvaluation of imventories: Wistire Branch 20,000 To record merchandise shipped to branch. 18 Equement: Wishire Branch 5,000 mestment in Wishire Branch 5,000 To record acquisition of equipment by branch for cash, 31 Investment in Wikshire Branch Operating Expenses To record alkocation of operating esperses to branch. 6,000 8,000 Prepare related journal entries for the Whilshire Branch of Watt Corporation: the branch uses the perpetual inventory system. 148 Part One Accounang for Parmerships and Branches (Exercise 4.5) Among the journal entries for business transactions and events of the Hoover Stre of Usc Company during January 2005, were the following CHECK FIGURE Jan 10, Credit allowance for 2005 Jan. 12 ventories 60.000 overvaluation of Home Office imventaries, $12,000 To record the receipt of merchandise shipped lan. 10 from the home office and billed at a merkup of 20% on biled price 25 Cash 25.000 Home Office To record collection of trade accounts receivable of home office. 31 Operating Expenses 18,000 Home Office 4.2) On September 1, 2005, Pasadena Company established a branch in San Marino. Folowing are the first three transactions between the home office and San Marino branch of Pasadena Сompany: Sept. I Home office sent $10,000 to the branch for an imprest bank account. 2 Home office shipped merchandise costing S60,000 to the branch, billed at a markup of 20% on billed price. 3 Branch acquired office equipment for $3,000, to be carried in the home office accounting records Both the home office and the San Marino branch of Pasadena Company use the perpetual inventory system. Prepare journal entries (omit explanations) for the foregoing transactions: a In the accounting records of the home office. à In the accounting records of the San Marino beunch. kercise(4.3) On September I, 2005, Western Company established the Eastern Branch. Separate ac- counting records were set up for the branch, Both the home office and the Eastern Branch use the periodic inventory system. Among the intracompany transactions were the following: Sept. I Home office mailed a check for $50,000 to the branch. The check was received by the branch on September 3. 4 Home ofice shipped merchandise costing 595,000 to the branch at a billed price of $125,000. The branch received the merchandise on September 8. II The branch acquired a truck for $34,200. The home office maintains the plant assets of the branch in its accounting records. Prepare journal entries (omit explanations) for the foregoing intracompany transactions in the accounting records of (a) the home office and (b) the Eastern Branch. cercise 4.4) Among the journal entries of the home office of Watt Corporation for the month of January 2005, were the following: 2005 Jan 2 hwestment in Wihhre Branch 100.000 Inventories B0,000 Alowance for Overvaluation of imventories: Wistire Branch 20,000 To record merchandise shipped to branch. 18 Equement: Wishire Branch 5,000 mestment in Wishire Branch 5,000 To record acquisition of equipment by branch for cash, 31 Investment in Wikshire Branch Operating Expenses To record alkocation of operating esperses to branch. 6,000 8,000 Prepare related journal entries for the Whilshire Branch of Watt Corporation: the branch uses the perpetual inventory system. 148 Part One Accounang for Parmerships and Branches (Exercise 4.5) Among the journal entries for business transactions and events of the Hoover Stre of Usc Company during January 2005, were the following CHECK FIGURE Jan 10, Credit allowance for 2005 Jan. 12 ventories 60.000 overvaluation of Home Office imventaries, $12,000 To record the receipt of merchandise shipped lan. 10 from the home office and billed at a merkup of 20% on biled price 25 Cash 25.000 Home Office To record collection of trade accounts receivable of home office. 31 Operating Expenses 18,000 Home Office

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