On September 1, 2016, the home office established two branches in Bacolod and Cebu. The...
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On September 1, 2016, the home office established two branches in Bacolod and Cebu. • The home office transferred P 320,000 worth of cash and P 1,400,000 worth of inventory to its Bacolod branch. The home office transfers merchandise to its branch at of 25% mark up above cost. • The home office instructed Bacolod to transfer 75% of both the goods and cash received to Cebu. • In addition, on October 1, 2016, shipments from home office were received by Bacolod amounting to P500,000 at cost and the branch paid freight costs amounting to P26,000. 60% of the October shipments were sold to outsiders on account for P420,000 On November 1, 2016, Bacolod transferred 50% of the remaining October shipments from home office to Cebu, with Cebu branch paying freight costs of P 10,000. Had the merchandise been shipped from home office to Cebu branch, only P 7,600 worth of freight would have been incurred. How much is the balance of the Cebu branch account on the home office books? On September 1, 2016, the home office established two branches in Bacolod and Cebu. • The home office transferred P 320,000 worth of cash and P 1,400,000 worth of inventory to its Bacolod branch. The home office transfers merchandise to its branch at of 25% mark up above cost. • The home office instructed Bacolod to transfer 75% of both the goods and cash received to Cebu. • In addition, on October 1, 2016, shipments from home office were received by Bacolod amounting to P500,000 at cost and the branch paid freight costs amounting to P26,000. 60% of the October shipments were sold to outsiders on account for P420,000 On November 1, 2016, Bacolod transferred 50% of the remaining October shipments from home office to Cebu, with Cebu branch paying freight costs of P 10,000. Had the merchandise been shipped from home office to Cebu branch, only P 7,600 worth of freight would have been incurred. How much is the balance of the Cebu branch account on the home office books?
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Related Book For
South-Western Federal Taxation 2018 Comprehensive
ISBN: 9781337386005
41st Edition
Authors: David M. Maloney, William H. Hoffman, Jr., William A. Raabe, James C. Young
Posted Date:
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