Trial Balance for the Home Office A Corporation and its FIRST Branch are as follows: HOME...

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Trial Balance for the Home Office A Corporation and its FIRST Branch are as follows: HOME DEBITS OFFICE A FIRST Cash 172,000 10,000 Receivables Inventories, Jan. 1 Other Assets 60,000 72,000 400,000 24,000 14,400 85,600 First Branch 100,000 Shipments from Home Office Purchases Expenses 60,000 240,000 156.000 70,000 Totals 1,200,000 264,000 CREDITS Accounts Payable Ordinary Shares Retained Earnings Home Office Sales 140,000 400,000 20,000 85,600 84,000 160,000 500,000 Shipments to First Allowance for Markup Totals 60,000 2.400 1,200,000 264,000 Additional Informotion: I. All shipments are billed at 20% cost. Ending inventories of the Home Office and the branch are P64,000 and P16,800, respectively. II. Branch inventories are at billed prices. Shipments in transit are still excluded. II. Goods in transit to First are at billed price of P12,000 for First. Cash in transit rom Home Office to First are for operating expenses amounting to P4,000. IV. The allowance for mark-up represents unrealized profit on branch beginning inventory. Questions: How much is the computed Net Income/ loss of the HomeOffice? How much is the adjusted balance of allowance for overvaluationaccount? How much is the TRUE Branch income? How much is the computed Gross Profit of the Home Office? How much is the combined Net Income? Trial Balance for the Home Office A Corporation and its FIRST Branch are as follows: HOME DEBITS OFFICE A FIRST Cash 172,000 10,000 Receivables Inventories, Jan. 1 Other Assets 60,000 72,000 400,000 24,000 14,400 85,600 First Branch 100,000 Shipments from Home Office Purchases Expenses 60,000 240,000 156.000 70,000 Totals 1,200,000 264,000 CREDITS Accounts Payable Ordinary Shares Retained Earnings Home Office Sales 140,000 400,000 20,000 85,600 84,000 160,000 500,000 Shipments to First Allowance for Markup Totals 60,000 2.400 1,200,000 264,000 Additional Informotion: I. All shipments are billed at 20% cost. Ending inventories of the Home Office and the branch are P64,000 and P16,800, respectively. II. Branch inventories are at billed prices. Shipments in transit are still excluded. II. Goods in transit to First are at billed price of P12,000 for First. Cash in transit rom Home Office to First are for operating expenses amounting to P4,000. IV. The allowance for mark-up represents unrealized profit on branch beginning inventory. Questions: How much is the computed Net Income/ loss of the HomeOffice? How much is the adjusted balance of allowance for overvaluationaccount? How much is the TRUE Branch income? How much is the computed Gross Profit of the Home Office? How much is the combined Net Income?

Answer rating: 100% (QA)

1The computed net income of the head office P155600 2Adjusted value of overvaluation is P400 3True B... View the full answer