Rana has a new branch in Dana mall. The following transactions extracted from the company and the branch records during May $2022.$

$1.$ The company invested $$200,000$ cash in one of its new branch.

$2.$ The branch purchases $$20,000$ of merchandise from supplier on account.

$3.$ Equipment was acquired by the Branch for $$30,000$ to be carried in home office accounting records.

$4.$ The branch paid $$8,000$ from its account payable balance.

$5.$ The company paid $$10,000$ cash on behalf of the branch to the supplier.

$6.$ The company shipped merchandise to the branch costs $$100,000.$

$7.$ Credit sales by branch amounted to $$150,000,$ and the cost of goods sold was $$120,000.$

$8.$ Operating expenses incurred by the home office and charged to the branch totaled $$7,000$

$9.$ The branch collects $$110,000$ of its receivables.

$10.$ The branch remitted $($transfer$)$ $$60,000$ cash to the company.

$11.$ The branch paid operating expenses of $$10,000.$

Additional information:

The Company records shows the following balances:

Inventories $3,000$; Common stock $100,000$; operating expenses $1,000$; returned earnings at the beginning $5,000$; Cash $10,000$; Building accumulated depreciation $7,000$; Account receivables $30,000$; Dividends $5,000$; Sales $100,000$; Buildings $20,000$; Accounts Payable $5,000$; COGS $50,000.$

Instruction:

$1-$ Prepare the working paper for the home office to Consolidate the Financial Statements.

$2-$ Prepare the closing entries in both the company and the branch.