The Wesley Company of Baguio City operates a branch in Dagupan. A branch balance sheet on...

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The Wesley Company of Baguio City operates a branch in Dagupan. A branch balance sheet on December 31, 2013 showed the following balances: Cash Accounts receivable Less: Allowance for bad debts Merchandise inventory Prepaid expenses Equipment Less: Accumulated depreciation Total assets Accounts payable Accrued expenses Home office Liabilities P122,000 8,500 P38,500 27,000 Branch transactions during 2014 are summarized as follows: 1. Sales on account, P400,000 2. Purchases on account, P105,000 3. Goods received from home office, billing at cost, P200,000 4. Collections on account, P380,000 10. Year-end adjusting data: Merchandise on hand, P194,000 5. Payments on account, P101,000 6. Bad accounts written off, P6,000 7. Cash remittances to home office, P150,000 8. Expenses paid, P124,000 9. Expenses paid by home office and charged to branch, P8,000- Prepaid expenses, December 31, P4,500 Accrued expense, December 31, P4,000 Receivables estimated to be uncollectible, December 31, P8,000 Depreciation for 2014, P6,000 P 35,000 113,500 165,000 3,500 11,500 P328,500 P 20,000 6,000 302,500 P328,500 Required: a. Give the entries to be made by the branch for the year to record the transactio and to adjust and close the accounts at the end of the year. b. Prepare a statement of financial position, a statement of profit or loss and a statement of changes in the home office account for the branch for the year end December 31, 2014. c. Give all the entries that would be made by the home office in 2014 affecting the 2021/02/04 branch account. The Wesley Company of Baguio City operates a branch in Dagupan. A branch balance sheet on December 31, 2013 showed the following balances: Cash Accounts receivable Less: Allowance for bad debts Merchandise inventory Prepaid expenses Equipment Less: Accumulated depreciation Total assets Accounts payable Accrued expenses Home office Liabilities P122,000 8,500 P38,500 27,000 Branch transactions during 2014 are summarized as follows: 1. Sales on account, P400,000 2. Purchases on account, P105,000 3. Goods received from home office, billing at cost, P200,000 4. Collections on account, P380,000 10. Year-end adjusting data: Merchandise on hand, P194,000 5. Payments on account, P101,000 6. Bad accounts written off, P6,000 7. Cash remittances to home office, P150,000 8. Expenses paid, P124,000 9. Expenses paid by home office and charged to branch, P8,000- Prepaid expenses, December 31, P4,500 Accrued expense, December 31, P4,000 Receivables estimated to be uncollectible, December 31, P8,000 Depreciation for 2014, P6,000 P 35,000 113,500 165,000 3,500 11,500 P328,500 P 20,000 6,000 302,500 P328,500 Required: a. Give the entries to be made by the branch for the year to record the transactio and to adjust and close the accounts at the end of the year. b. Prepare a statement of financial position, a statement of profit or loss and a statement of changes in the home office account for the branch for the year end December 31, 2014. c. Give all the entries that would be made by the home office in 2014 affecting the 2021/02/04 branch account.

Answer rating: 100% (QA)

a Entries to be made by the branch for the year 1 Sales on account Debit ... View the full answer