Oslo Corp. has been operating a branch in Spain for a year. Shipments are billed to the branch at cost. The branch carries its own accounts receivable, makes its own cash collections, and pays its own expenses. The transactions of the branch for the year 2000 are given affect in trial  balance below:

                                                                      Debits                                   Credits

Cash                                                         200,000

Ho current                                                                                                 400,000

Shipments from HO                             1, 600,000

Accounts receivable                                  300,000

Sales                                                                                                         1,940,000

Expenses                                                     240,000                                                  

Totals                                                      2, 340,000                               2, 340,000

The branch inventory on December 31, 2000 is 260,000.

1) On January 1, 2000, the shipment to branch account on the HO books should have an opening balance of ?

2) On December 31, 2000, compute the net income of the branch.

3) On January 1, 2000, the Branch current account on the books of the HO should have a balance of?

Answer rating: 100% (QA)

The opening balance of the shipment to branch account on the HO books on January 1 2000 would be zer... View the full answer