Problems, show supporting computations:

1. prepare journal entries for the home office and the branch. (48 pts)

a. Cash of $5,000 was forwarded by the home office to the branch.

b. Merchandise with a home office cost of $55,000 was shipped to the branch.

c. Equipment was acquired by the branch for $1,000, to be carried in the home office accounting records.

d. The home office acquired a computer for the branch for $1,500.

e. Credit sales by the branch amounted $75,000 the branch’s cost of merchandise sold was $40,000

f. Collection of trade accounts receivable by the branch amounted to $40,000.

g. Payments for operating expenses by the branch totaled $18,000.

h. Cash of $27,500 was remitted by the branch to the home office.

i. Operating expenses incurred by the home office and charged to the branch totaled $5,000

j. Home office shipped merchandise at home office cost of $60,000 with a mark up of 20% to the branch.

2. Prepare the reconciliation of the reciprocal accounts before the closing entries

Answer rating: 100% (QA)

Journal Entry Home Office 1 Lovetoint afe T 4 57 Cach afe 19 3 Eq... View the full answer