the Company and its branch on December 31, 2021. It is the company's policy to bill all branches for merchandise shipments at 30% above cost. Determine: a. How much of the branch inventory on January represents purchases from outsiders? b. Assuming that the branch ending inventory acquired from home office is P 46,800 at billed price, what is the net income (loss) of the branch insofar as the home office is concerned? * Shipments to branch Allowance for overvaluation of branch inventory Shipments from home office Purchases (from outsiders) Merchandise inventory, January 1 Merchandise inventory, December 31 Sales Home Office Books P 360,000 119,880 Branch Books P 468,000 173,520 65,520 58,500 648,000

the Company and its branch on December 31, 2021. It is the company's policy to bill all branches for merchandise shipments at 30% above cost. Determine: a. How much of the branch inventory on January represents purchases from outsiders? b. Assuming that the branch ending inventory acquired from home office is P 46,800 at billed price, what is the net income (loss) of the branch insofar as the home office is concerned? * Shipments to branch Allowance for overvaluation of branch inventory Shipments from home office Purchases (from outsiders) Merchandise inventory, January 1 Merchandise inventory, December 31 Sales Home Office Books P 360,000 119,880 Branch Books P 468,000 173,520 65,520 58,500 648,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

5. Presented below are items taken from the unadjusted trial balance of the Company and its branch on December 31, 2021. It is the company’s policy to bill all branches for merchandise shipments at 30% above cost. Determine: a. How much of the branch inventory on January represents purchases from outsiders? b. Assuming that the branch ending inventory acquired from home office is P 46,800 at billed price, what is the net income (loss) of the branch insofar as the home office is concerned?
5. Presented below are items taken from the unadjusted trial balance of the Company and its branch on December 31, 2021. It is the company's policy to bill all branches for merchandise shipments at 30% above cost. Determine: a. How much of the branch inventory on January represents purchases from outsiders? b. Assuming that the branch ending inventory acquired from home office is P 46,800 at billed price, what is the net income (loss) of the branch insofar as the home office is concerned? * Home Office Books P 360,000 119,880 Branch Books Shipments to branch Allowance for overvaluation of branch inventory Shipments from home office Purchases (from outsiders) Merchandise inventory, January 1 Merchandise inventory, December 31 Sales P 468,000 173,520 65,520 58,500 648,000 Expenses 61,200
5. Presented below are items taken from the unadjusted trial balance of the Company and its branch on December 31, 2021. It is the company's policy to bill all branches for merchandise shipments at 30% above cost. Determine: a. How much of the branch inventory on January represents purchases from outsiders? b. Assuming that the branch ending inventory acquired from home office is P 46,800 at billed price, what is the net income (loss) of the branch insofar as the home office is concerned? * Home Office Books Branch Books Shipments to branch Allowance for overvaluation of branch inventory Shipments from home office Purchases (from outsiders) Merchandise inventory, January 1 Merchandise inventory, December 31 Sales P 360,000 119,880 P 468,000 173,520 65,520 58,500 648,000 61,200 Expenses Your answer
Presented below are items taken from the unadjusted trial balance of the Company and its branch on December 31, 2021. It is the company’s policy to bill all branches for merchandise shipments at 30% above cost. Determine: a. How much of the branch inventory on January represents purchases from outsiders? b. Assuming that the branch ending inventory acquired from home office is P 46,800 at billed price, what is the net income (loss) of the branch insofar as the home office is concerned? Home Office Branch Shipments to branch 360,000 Allowance for overvaluation of branch inventory 119,880 Shipments from home office 468,000 Purchases from outsiders 173,520 Merchandise inventory - January 1 65,520 Merchandise inventory - December 31 58,500 Sales 648,000 Expenses 61,200
Presented below are items taken from the unadjusted trial balance of the Company and its branch on December 31, 2021. It is the company's policy to bill all branches for merchandise shipments at 30% above cost. Determine: a. How much of the branch inventory on January represents purchases from outsiders? b. Assuming that the branch ending inventory acquired from home office is P 46,800 at billed price, what is the net income (loss) of the branch insofar as the home office is concerned? Home Office Books Branch Books Shipments to branch Allowance for overvaluation of branch inventory Shipments from home office Purchases (from outsiders) Merchandise inventory, January 1 Merchandise inventory, December 31 Sales P 360,000 119,880 P 468,000 173,520 65,520 58,500 648,000 Expenses 61,200
The following transactions relating to branch SG and branch Popsters are the following: • On September 30, 2020, branch SG collected branch Popsters' accounts receivable of P80,000 less 3%discount. • On October 31, 2020, home office shipped merchandise costing P400,000 to branch SG. Freight of P6,000 was paid by the home office. It is the policy of the company to bill its branches at 25% above cost. • On November 30, 2020, upon the instruction of the home office, branch SG reshipped a quarter of the above merchandise to branch Popsters with freight of P3,000 (freight-collect). Had the goods been shipped directly to branch Popsters, the freight would have been only P1,400. What is the home office current account of branch SG as of October 31, 2020?
On February 1, 2020, ABC Corporation sells $300,000 of merchandise on account. The payment terms are 3/10, n/30. If the customer pays on February 11, ABC's journal entry on that date will: O a. Debit loss on accounts receivable for $9,000 and credit accounts receivable for $300,000. O b. Debit cash for $300,000 and credit Sales discounts for $9,000. O c. Debit cash for $291,000 and debit selling expense for $9,000. O d. Debit sales discounts for $9,000 and credit accounts receivable for $300,000. A Click Submit to complete this assessment. «< Question 28 of 28 Save and Submit 10:45 AM Type here to search 5/5/2021 DELL F5 F6 F7 F8 F9 F10 F11 F12 PrtScr Insert Delete F1 F2 F3 F4 10) @ # $ % & ) + Backspace 1 2 4 5 6 7 8 9 Q W E R T Y P
On January 1,2021, Wackisan Co. sells inventory with list price of ₱100,000 on account under credit terms of 15%, 20%, 3/10, n/30. Based on the above data, answer the following: 1. Under the gross method, how much should be debited to Accounts receivable on January 1,2021? a. ₱100,000 c. ₱68,000 b. ₱85,000 d. ₱65,960 2. Under the net method, how much should be debited to Accounts receivable on January 1,2021? a. ₱100,000 c. ₱68,000 b. ₱85,000 d. ₱65,960
On June 1, 2021, Pitt Company sold merchandise with a list price of P5,000,000 to Burr on account. Pitt allowed trade discounts of 30% and 20%. On June 11, 2021, the customer paid in full. Credit terms were 2/10, n/30 and the sale was made FOB shipping point. Pitt prepaid P200,000 of delivery costs for Burr as an accommodation. 1. What amount should be reported as sales revenue? a. 5,000,000 b. 2,800,000 c. 3,500,000 d. 2,500,000 2. What amount was received by Pitt from Burr as remittance in full? a. 2,744,000 b. 2,940,000 c. 2,944,000 d. 3,140,000
On January 15, 2021, X Company bought merchandise from Y Company amounting to P30,000 (VAT exclusive). Terms 2/10, n/30, FOB shipping point, freight collect. Amount of freight cost is P1,000, The amount of Accounts Receivable to be recorded on the date of purchase will be⚫
The home office of SG Company, which uses the perpetual inventory system, bills shipments of merchandise to the Popsters Branch at a markup of 25% on the billed price. On August 31, 2020, the credit balance of the home office’s Allowance for Overvaluation of Inventories – Popsters Branch ledger account was P60,000. On September 17, 2020, the home office shipped merchandise to the branch at a billed price of P400,000. The branch reported an ending inventory, at billed price, of P160,000 on September 31, 2020. Compute the realized gross profit for the month of September 2020:Required to answer. Single line text.
the Company and its branch. The balances are at December 31,2021, the third year of the corporation's existence. (see image below). The branch acquires all of its merchandise from the home office. The inventories of the branch at billed prices on January 1, 2021 is P 90,0o00 and on December 31, 2021 is P100,800. Determine a. The percentage of profit on cost that the home office uses to bill merchandise shipped to branch and b. The balance of the Shipments to Branch account before the books are closed * Home Office Books Branch Books P 720,000 240,000 Sales Expenses Shipments from home office Allowance for overvaluation of branch inventory 432,000 P 87,000