PROBLEMS 1-Special Procedures Shipments with Unrealized Intercompany Inventory Profit / Deferred Profit Hope Company operates a...
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PROBLEMS 1-Special Procedures Shipments with Unrealized Intercompany Inventory Profit / Deferred Profit Hope Company operates a main store at its home office and a branch store in another city. The branch purchases most of its merchandise from the home office at 10% above home office cost. All merchandise acquired from other suppliers is accounted for by the branch at original cost. At September 30, 20x4, the records of the branch indicated the following: September Sale...........................140,000 Inventory, September 135,200 (50% from outside suppliers) Shipments from home office............. 55,000 (at billed price) Purchases from outsiders....... 24,000 - 8,000 Selling expenses...... General expenses.. 32,000 30,000 (P8,000 from outside suppliers) Inventory, September 30. *Merchandise acquired from the home office is inventoried at billed prices. Required: 1. Give the journal entries on the home office and branch books to record the shipments. 2. Prepare the income statement for the branch. 3. Prepare all necessary entries on the home office books at September 30, 20x4 to adjust the home office records for the branch operations for September. PROBLEMS 1-Special Procedures Shipments with Unrealized Intercompany Inventory Profit / Deferred Profit Hope Company operates a main store at its home office and a branch store in another city. The branch purchases most of its merchandise from the home office at 10% above home office cost. All merchandise acquired from other suppliers is accounted for by the branch at original cost. At September 30, 20x4, the records of the branch indicated the following: September Sale...........................140,000 Inventory, September 135,200 (50% from outside suppliers) Shipments from home office............. 55,000 (at billed price) Purchases from outsiders....... 24,000 - 8,000 Selling expenses...... General expenses.. 32,000 30,000 (P8,000 from outside suppliers) Inventory, September 30. *Merchandise acquired from the home office is inventoried at billed prices. Required: 1. Give the journal entries on the home office and branch books to record the shipments. 2. Prepare the income statement for the branch. 3. Prepare all necessary entries on the home office books at September 30, 20x4 to adjust the home office records for the branch operations for September.
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Here are the journal entries for the problem 1 Journal entries to record the shipments from hom... View the full answer
Related Book For
Modern Advanced Accounting In Canada
ISBN: 9781259066481
7th Edition
Authors: Hilton Murray, Herauf Darrell
Posted Date:
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