Popsters just opened a branch in Baguio City this December 2015. Summary of transactions for the first
Question:
Popsters just opened a branch in Baguio City this December 2015. Summary of transactions for the first month of operations follows:
1. Baguio Branch received P15,750 cash from home office to start its operations.
2. Home Office shipped merchandise to the Branch costing P100,000 at 25% mark up on cost, of which 20% have not yet received by the Branch.
3. Branch purchases from other suppliers amounted to P89,250.
4. Branch sales for the month amounted to P245,000
5. Home Office debit memo for P3,500 representing the Branch's share on advertising expenses was recorded only by the Branch on the 3rd day of January 2016.
6. Branch operating expenses of P61,250 were paid by the Home Office.
7. Branch remitted P29,750 to the Home Office but the Home Office bookkeeper recorded it only in the month of January 2016.
8. The merchandise inventory on hand of the Branch is:
From outsiders, P21,000
From Home Office, P37,500
What is the unadjusted balance of the Home Office and Branch account at December 31, 2015?
College Accounting A Contemporary Approach
ISBN: 978-0077639730
3rd edition
Authors: David Haddock, John Price, Michael Farina