CHAPTER 12

MULTIPLE CHOICES - COMPUTATIONAL

12-1: d. This is recorded when the working fund is replenished.
12-2: c.
Sales P 700,000
Cost of goods sold:
Purchases P800,000
Merchandise inventor, end !80,000 "#0,000
$ross profit P 80,000
%&penses !'8,000
Net income (loss) P (!!8,000)
12-3: b
Sales P 70,000
Cost of goods sold (P70,000 * !+0,) -0,000
$ross profit P #0,000
.ess: Sa/ples (P8,000 0 P",000) P #,000
%&penses #,800 +,800
Net income P 15,200
12-4: a
Sales P !00,000
Cost of goods sold 7#,000
$ross profit P #8,000
%&penses (P',000 1 P+,-00) !2,-00
Net income P !+,-00
12-5: a
12-6: a
12-7: c
12.8 a
Ship/ent of /erchandise to ho/e office P 80,000
%3uip/ent sent to ho/e office -0,000
%&penses assigned to 4ranch 4 the ho/e office 8,000
Cash re/ittance to ho/e office (+0,000)
Home office account balance P '8,000
!
12-9: d
12-1: a
5o/e 6ffice account 4alance 4efore closing, 7ec. 2#, !008 P 2-,000
8et inco/e (loss)
Sales P!+7,000
Cost of cost goods sold
Ship/ent to 4ranch P!2-,000
9nventor, !#*2! !8,-00 !!",-00
$ross profit P 20,-00
%&penses !2,-00 !7,000
5o/e 6ffice account 4alance (Investment in Branch account balance) P -#,000
Ship/ent to :ranch account has no 4eginning 4alance, 4ecause this was closed at the end
of #0!!.
12-11: b
Jan. 1, 2011 Jan. 1, 2012
Pett cash fund P ",000 P ",000
;ccounts receiva4le 8",000 '8,000
9nventor 7+,000 8#,000
Home Office account balance P166,000 P186,000
12-12: d
!"#a$c% "&&'() !H&*+ O,,-c+ "&&'()
Home Office Investment in Branch
<nad=usted 4alances, 7ec. 2! P #!,2#0 P 28,"00
>e/ittance in transit (!0,+00)
Ship/ent in transit 7,#80
Cash collections of ho/e office ( +00)
A!uste balances, "ec# $1 P %8,%00 P %8,%00
12-13: a
<nad=usted 4alance 0 9nvest/ent in :ranch account, !#*2! P+20,000
Charge for advances 4 president (-,-00)
%rroneous entr for /erchandise allowance ( "00)
Share in advertising e&pense (',000)
&na!uste balance ' Home Office account, 1%($1 P)1) ,*00
#
12-14: a
!"#a$c% "&&'() !H&*+ O,,-c+ "&&'()
Home Office Investment in Branch
<nad=usted 4alances, !#*2! P '7,2-0 P 8+,000
Ship/ent in transit ",!-0
Collection of 56 ;*> 4 4ranch #-,000
%rror in recording of 4ranch profit '00
>eturns of /erchandise in transit ( ",+00)
A!uste balances, 1%($1 P10$,+00 P10$,+00
12-15: a
("#a$c% "&&'() !H&*+ O,,-c+ "&&'()
Home Office Investment in Branch
<nad=usted 4alances P#7,2-0 P#-,--0
%rror in recording ship/ent to Cavit 4ranch (!#,000)
%rror in recording ship/ent to Tagata 4ranch !-,000
:ranch ;> collected 4 ho/e office (2,"00)
Merchandise returns in transit ( !,#00)
%rror in recording 4ranch profit ( 2,"00)
A!uste balances P%$,,+0 P%$,,+0
12-16: c
<nad=usted 4alance? 9nvest/ent in :ranch account P 8-,000
>e/ittance in transit (!0,000)
Ship/ent in transit (#0,000)
%&penses allocated ( -,000)
%rror in recording re/ittance 2,000
%rror in recording ship/ents ( ',000)
&na!uste balance ' Home Office account P )),000
! "#a$c% "&&'() !H&*+O,,-c+ "&&'()
Home Office Investment in Branch
<nad=usted 4alances, P ++,000 P 8-,000
>e/ittance in transit (!0,000)
Ship/ent in transit #0,000
%&penses allocated -,000
<nrecorded 56 collection of ;> (2,000)
%rror in recording ship/ents ',000
A!uste balances P 7-,000 P 7-,000
12.17 a
("#a$c% "&&'() !H&*+ O,,-c+ "&&'()
Home Office Investment in
Branch
<nad=usted 4alances P ++0,000 P )*6,000
:ranch ;> collected 4 5o/e 6ffice ( 8,000)
Ship/ents in transit 2#,000
;c3uisition of furniture (!#,000)
Merchandise returns (!-,000)
Cash re/ittance in transit ( -,000)
A!uste balances P )6),000 P )6),000
2
PRO"LEMS
P#&b.+* 12-1
H&*+ O,,-c+ "&&'( "#a$c% "&&'(
1. Investment in branch 30,000 Cash 30,000
Cash 30,000 Home office 30,000
2. Investment in branch 75,000 Shiment from home office 75,000
Shiment to branch 75,000 Home office 75,000
3. !o entr" P#rchases 10,000
$cco#nts a"ab%e 10,000
&. !o entr" $cco#nts receivab%e 125,000
Sa%es 125,000
5. Shiment to branch 2,000 Home office 2,000
Investment in branch 2,000 Shiment from home office 2,000
'. !o entr" Cash 105,000
$cco#nts receivab%e 105,000
7. !o entr" $cco#nts a"ab%e 7,000
Cash
7,000
(. !o entr" Sa%aries 10,000
>ent -,000
)ti%ities 2,000
Other oeratin* e+enses 12,000
Cash
2,,500
,. Investment in branch 7,500 -ereciation 1,500
$cc#m#%ate. .e/n 7,500 0ent 5,000
Ins#rance 1,000
Home office 7,500
10. Cash '5,000 Home office '5,000
Investment in branch '5,000 Cash
'5,000
11. Cash 3,000 Home office 3,000
Investment in branch 3,000 $cco#nts receivab%e 3,000
12. Investment in branch 10,000 Sa%es 125,000
Branch income 10,000 Inventor", en. 5,000
Shiment from HO
73,000
P#rchases 10,000
+
Sa%aries
10,000
0ent 10,000
)ti%ities 2,000
Other oeratin* e+enses
12,500
Home office 10,000
Pro4le/ !#?#
a. "&&'( &, /%+ "#a$c%
1. Cash 200,000
1erchan.ise inventor" 350,000
Home office 550,000
2. 1erchan.ise inventor" &00,000
$cco#nts a"ab%e &00,000
3. $cco#nts receivab%e '50,000
Sa%es '50,000
Cost of *oo.s so%. &25,000
1erchan.ise inventor" &25,000
Cash '00,000
$cco#nts receivab%e '00,000
&. $.vertisin* e+ense &0,000
Sa%es commission '5,000
Other e+ense &5,000
Cash 150,000
5. $cco#nts a"ab%e 370,000
Home office 120,000
Cash &,0,000
b. Ma$-.a Sa.+( 0 Na1a "#a$c%
I$c&*+ S/a/+*+$/
2+a# E$d+d 3+c+*b+# 314 211
Sales P"-0,000
Cost of goods sold +#-,000
$ross profit ##-,000
%&penses:
;dvertising e&pense P+0,000
Sales co//issions "-,000
6ther e&penses +-,000 !-0,000
8et inco/e P 7-,000
c. Ma$-.a Sa.+( 0 Na1a "#a$c%
S/a/+*+$/ &, 5-$a$c-a. P&(-/-&$
-
3+c+*b+# 314 211
Cash P!"0,000 ;ccounts paa4le P 20,000
;ccounts receiva4le -0,000 5o/e office -0-,000
Merchandise inventor 2#-,000
Total assets P-2-,000 Total lia4ilities and capital P-2-,000
Pro4le/ !#?2
H&*+ O,,-c+ "&&'( "#a$c% "&&'(
!1) A!ustin- .ntries
a. 9nvest/ent in 4ranch "2,7-0 Cash "2,7-0
Cash "2,7-0 5o/e office "2,7-0
b. 9nvest/ent in 4ranch 7-,200 Ship/ent fro/ 56 7-,200
Ship/ent to 4ranch 72,200 5o/e office 7-,200
c. ;ccounts receiva4le !-7,-00 ;ccounts receiva4le '',000
Sales !-7,-00 Sales '',000
d. Purchases !82,7-0 Purchases 22,7-0
;ccounts paa4le !82,7-0 ;ccounts paa4le 22,7-0
+. Cash !70,+00 Cash 80,!00
;ccounts receiva4le !70,+00 ;ccounts receiva4le 80,!00
5o/e office 80,!00
Cash 80,!00
,. ;ccounts paa4le !8",000 ;ccounts paa4le !8,27-
Cash !8",000 Cash !8,27-
1. %&penses 2','00 ?
Cash 2','00
@urniture A fi&tures 0 4ranch !#,000 5o/e office !#,000
9nvest/ent in 4ranch !#,000 Cash !#,000
%. Cash 80,!00 ?
9nvest/ent in 4ranch 80,!00
%&penses #7,000
Cash #7,000
-. >etained earnings !-,000
Cash !-.000
(%) A!ustin- .ntries
6. %&penses !,7-0
;cc. 7epreciation !,7-0
'. 9nvest/ent in 4ranch '7- %&penses '7-
;cc. 7epBn 0 :r. @ A @ '7- 5o/e office '7-
"
.. Prepaid e&penses 27- Prepaid e&penses !,!#-
%&penses 27- %&penses !,!#-
*. %&penses !-0 %&penses +-0
;ccrued e&penses !-0 ;ccrued e&penses +-0
/losin- .ntries
H&*+ O,,-c+ "&&'( "#a$c% "&&'(
$. Sales !-7,-00 Sales '',000
Ship/ents to 4ranch 7-,200 Merchandise inv., !#*2! 2-,#-0
Merchandise inv., !#*2! 7#,7-0 9nco/e su//ar #,!00
Merchandise inv. !*! "0,!80 Purchases 22,7-0
Purchases !82,7-0 Ship/ent fro/ 56 7-,200
%&penses +!,++- %&penses #7,200
9nco/e su//ar #0,!7-
o. :ranch loss #,!00 5o/e office #,!00
9nvest/ent in 4ranch #,!00 9nco/e su//ar #,!00
7. 9nco/e su//ar #,!00
:ranch loss #,!00
8. 9nco/e su//ar !8,07-
>etained earnings !8,07-
3. Iniviual 0inancial 1tatements
C+b9 C&*7a$: 0 H&*+ O,,-c+
I$c&*+ S/a/+*+$/
2+a# E$d+d 3+c+*b+# 314 211
Sales P!-7,-00
Cost of sales
Merchandise inventor, !*! P "0,!80
Purchases !82,7-0
$oods availa4le for sale P#+2,'20
Ship/ent to 4ranch ( 7-,200)
$oods availa4le for own sale P!"8,"20
Merchandise inventor, !#*2! ( 7#,7-0) '-,880
$ross profit P "!,"#0
%&penses +!,++-
8et operating inco/e P #0,!7-
:ranch inco/e (loss) ( #,!00)
8et inco/e P !8,07-
C+b9 C&*7a$: 0 "#a$c%
I$c&*+ S/a/+*+$/
2+a# E$d+d 3+c+*b+# 314 211
Sales P '',000
Cost of sales
Purchases P 22,7-0
7
Ship/ents fro/ ho/e office 7-,200
$oods availa4le for sale P!0',0-0
Merchandise inventor, !#*2! 2-,#-0 72,800
$ross profit P #-,#00
%&penses #7,200
8et inco/e (loss) P( #,!00)
Prob%em 1023, contin#e.
C+b9 C&*7a$: 0 H&*+ O,,-c+
S/a/+*+$/ &, 5-$a$c-a. P&(-/-&$
3+c+*b+# 314 211
Assets
Cash P 2+,800
;ccounts receiva4le #8,-7-
Merchandise inventor, !#*2! 7#,7-0
Prepaid e&penses 2,07-
@urniture and fi&tures P20,000
.ess: ;ccu/ulated depreciation 8,270 #!,"20
:ranch furniture and fi&tures P!#,000
.ess: ;ccu/ulated depreciation '7- !!,0#-
9nvest/ent in 4ranch +-,8#-
Total assets P#!7,"80
2iabilities an 1toc3holers4 .5uit6
3iabi%ities
;ccrued e&penses P #,0#-
;ccounts paa4le 2!,'-0
Total lia4ilities P 22,'7-
Stoc4ho%.ers/ 56#it"
Capital stock P 7-,000
>etained earnings !08,70- !82,70-
Total lia4ilities and stockholdersB e3uit P#!7,"80
C+b9 C&*7a$: 0 "#a$c%
S/a/+*+$/ &, 5-$a$c-a. P&(-/-&$
3+c+*b+# 314 211
Assets
Cash P ",27-
;ccounts receiva4le !8,000
Merchandise inventor, !#*2! 2-,#-0
Prepaid e&penses !,!#-
Total assets P"!,"-0
2iabilities an /a7ital
;ccounts paa4le P +-0
5o/e office !-,27-
Total lia4ilities and capital P"!,"-0
8
Prob%em 1223, contin#e.7
)# /ombine 0inancial 1tatements
C+b9 C&*7a$:
C&*b-$+d I$c&*+ S/a/+*+$/
2+a# E$d+d 3+c+*b+# 314 211
Sales P#-",-00
Cost of sales
Merchandise inventor, !*! P "0,!80
Purchases #!7,-00
$oods availa4le for sale P#77,"80
Merchandise inventor, !#*2! !08,000 !"',"80
$ross profit P 8",8#0
%&penses "8,7+-
Co/4ined net inco/e P !8,07-
C+b9 C&*7a$:
S/a/+*+$/ &, 5-$a$c-a. P&(-/-&$
3+c+*b+# 314 211
Assets
Cash P +!,!7-
;ccounts receiva4le +7,+7-
Merchandise inventor !08,000
Prepaid e&penses +,#00
@urniture and fi&tures P+#,000
.ess: accu/ulated depreciation ',2+- 2#,"--
Total assets P#22,-0-
2iabilities an 1toc3holers4 .5uit6
;ccrued e&penses P #,+7-
;ccounts paa4le +7,2#-
Capital stock 7-,000
>etained earnings !08,70-
Total lia4ilities and stockholdersB e3uit P#22,-0-
P#&b.+* 12-4
"#a$c% "&&'( H&*+ O,,-c+ "&&'(
!a) a$d !b) /losin- .ntries
Sales !+-,000 Sales -"0,000
9nventor, !#*2! "0,000 9nventor, !#*2! '0,000
9nventor, !*! !8,000 Ship/ents to 4ranch !+-,000
Ship/ents fro/ 56 !+-,000 9nventor, !*! +-,000
%&penses #0,000 Purchases -+0,000
9nco/e su//ar #2,000 %&penses '0,000
9nco/e su//ar !#0,000
9nco/e su//ar ##,000 9nvest/ent in 4ranch ##,000
'
5o/e office ##,000 :ranch inco/e ##,000
:ranch inco/e ##,000
9nco/e su//ar ##,000
9nco/e su//ar !+#,000
>etained earnings !+#,000
Prob%em 122&, contin#e.7
!c) C; C&#7&#a/-&$
C&*b-$+d S/a/+*+$/ <&#'-$1 Pa7+#
2+a# E$d+d 3+c+*b+# 314 211
.liminations
Income
Home 1tatement Balance
Office Branch "ebit /reit "r (/r) 1heet
3+b-/(
Cash 2",000 7,000 +2,000
;ccounts receiva4le -+,000 #',000 82,000
9nventor, !*! +-,000 !8,000 "2,000
9nvest/ent in 4ranch 70,000 (#) 70,000
%3uip/ent (net) '-,000 '-,000
Purchases -+0,000 -+0,000
Ship/ents fro/ 56 !+-,000 (!)!+-,000
%&penses '0,000 #0,000 !!0,000
Total de4its '20,000 #!',000
9nventor !#*2! (:S) !-0,000
Total assets 27!,000
C#+d-/(
;ccounts paa4le #7,000 +,000 2!,000
5o/e 6ffice 70,000 (#) 70,000
Capital stock -+,000 -+,000
>etained earnings, !*! !++,000 !++,000
Sales -"0,000 !+-,000 (70-,000)
Ship/ents to 4ranch !+-,000 (!)!+-,000
Total credits '20,000 #!',000
9nventor, !#*2! (9S) '0,000 "0,000 (!-0,000)
#!-,000 #!-,000
8et inco/e !+#,000 !+#,000
Total lia4ilities A e3uit 27!,000
1. 8o e%iminate shiments to branch an. shiments from HO
2. 8o e%iminate reciroca% acco#nts.
!0
Pro4le/ !#?-
!1) O#& C&*7a$:
<&#'-$1 Pa7+# ,&# C&*b-$+d S/a/+*+$/(
2+a# E$d+d 3+c+*b+# 314 211
Income
Home .liminations 1tatements Balance
Office Branch "ebit /reit "r (/8) 1heet
3+b-/(
Cash "2,000 #!,'00 8+,'00
8otes receiva4le !0,-00 !0,-00
;ccounts receiva4le (net) !#0,"00 --,'-0 !7",--0
9nventories !+2,700 2",200 (#)!2-,000 +-,000
@urniture A fi&tures (net) 7#,!-0 7#,!-0
9nvest/ent in :ranch !#+,0-0 (!)!#+,0-0
Cost of goods sold 200,7-0 !#8,700 (#)!2-,000 -"+,0-0
6perating e&penses !0+,#-0 2#,8-0 !27,!00
Totals '2',000 #7-,700 28',!00
C#+d-/(
;ccounts paa4le "!,-00 "!,-00
Co//on stock 200,000 200,000
>etained earnings 27,-00 27,-00
5o/e 6ffice !#+,0-0 (!)!#+,0-0
Sales -+0,000 !-!,"-0 ("'!,"-0)
Totals '2',000 #7-,700 #8',0-0 #8',0-0
8et 9nco/e ','00 (','00)
28',!00
(!) To eli/inate ship/ents
(#) To eli/inate reciprocal accounts.
/losin- .ntries
2. "#a$c% "&&'( 3. H&*+ O,,-c+ "&&'(
Sales !-!,"-0
9nco/e Su//ar ','00
Cost of goods sold !#8,700
6perating e&penses 2#,8-0
5o/e 6ffice ','00 :ranch loss ','00
!!
9nco/e su//ar ','00 9nvest/ent in :ranch ','00
9nco/e su//ar ','00
:ranch loss ','00
Pro4le/ !#?"
a. Investment in Branch account (Home Office Boo3s)
<nad=usted 4alance P!28,#00
%rror in recording cash transfer, ;pril 8 ( +-,000)
Cash transfer recorded in su4se3uent ear, 7ec. 2! ( !-,000)
%rror in recording allocated depreciation, 7ec. 2! ",000
;d=usted 4alance P 8+,#00
Home Office account (Branch Boo3s)
<nad=usted 4alance P('2,000)
%rror in recording salar allocation, ;pril - ( #00)
%rror in recording inventor transfer, Cul " !#,000
<nrecorded allocated depreciation, 7ec. 2! ( 2,000)
;d=usted 4alance P(8+,#00)
b. A!ustin- .ntries
Home Office Boo3s Branch Boo3s
6ther inco/e +-,000 Salar e&pense #00
9nvest/ent in 4ranch 0 5o/e office #00
>iDal +-,000
Cash !-,000 5o/e office !#,000
9nvest/ent in 4ranch? Ship/ents fro/ 56 !#,000
>iDal !-,000
9nvest/ent in 4ranch ",000 7epreciation e&pense 2,000
;ccu/ulated depBn ",000 5o/e office 2,000
Pro4le/ !#?7
a. Investment in Branch account (Home Office Boo3s)
<nad=usted 4alance, 7ec. 2! P!"",+00
Cash re/ittance in transit (20,000)
Merchandise returns in transit (!#,000)
;d=usted 4alance, 7ec. 2! P!#+,+00
Home Office account (Branch Boo3s)
<nad=usted 4alance, 7ec. 2! P!02,#00
%rror in recording e&pense 7,#00
Ship/ent in transit #+,000
Supplies charged to 4ranch 8,000
Collection of 4ranch receiva4le ( !8,000)
;d=usted 4alance, 7ec. 2! P!#+,+00
!#
b. A!ustin- .ntries
H&*+ O,,-c+ "&&'( "#a$c% "&&'(
Cash 20,000 Ship/ent fro/ 56 #+,000
Ship/ent to 4ranch !#,000 Supplies 8,000
9nvest/ent in 4ranch +#,000 %&penses 7,#00
;ccounts receiva4le !8,000
5o/e office #!,#00
Pro4le/ !#?8
!1) 8econciliation 1tatement
(H&*+ O,,-c+ "&&'() !"#a$c% "&&'()
Investment in Branch Home Office

<nad=usted 4alances, !*2! P-',7#0 P +2,#"8
;dvertising charged to 4ranch +80
5o/e office ;> collected 4 4ranch "00
Ship/ent in transit ( !80)
%rror in recording receipt of /erchandise ( +2#)
<nderstate/ent of depreciation (!#,800)
>e/ittance in transit, !*2! P+7,088 P +7,088
!2) Ad69(/-$1 E$/#-+(
H&*+ O,,-c+ "&&'( "#a$c% "&&'(
>etained earnings +2# ;dvertising +80
Cash !#,800 Ship/ents fro/ 56 2,-#0
;ccounts receiva4le "00 Ship/ent fro/ 56 !80
9nvest/ent in 4ranch !#,"2# 5o/e office 2,8#0
Pro4le/ !#?'
!1) "#a$c% "&&'(
A!ustin- .ntries
Ship/ent fro/ ho/e office -7,"00
6perating e&penses (P+,#00 1 P2,'00) 8,!00
5o/e office "-,700
/losin- .ntries
Sales 778,#00
9nventor, !#*2! (P"+,-80 1 P-7,"00) !##,!80
9nventor, !*! +7,800
Ship/ent fro/ 56 (P"#2,#00 1 P-7,"00) "80,800
6perating e&penses -+,7'0
9nco/e su//ar !!",''0
9nco/e su//ar !!",''0
5o/e office !!",'00
!2
Prob%em 122,, contin#e.7
!2) H&*+ O,,-c+ "&&'(
;ccounts receiva4le +70
9nvest/ent in 4ranch 220
Cash (P#0,000 1 P!',#00) 800
9nvest/ent in 4ranch !!",''0
:ranch inco/e !!",'00
!3) R+c&$c-.-a/-&$ S/a/+*+$/
H&*+ O,,-c+ "&&'( "#a$c% "&&'(
(Investment in Branch) (Home Office)
<nad=usted 4alances, !#*2! P #0",2++ P !+0,'7+
%rror in recording re/ittance to 4ranch #0,000
Ship/ent in transit -7,"00
%&penses charged to 4ranch 8,!00
:ranch net inco/e !!",''0 !!",''0
@reight erroneousl charged to 4ranch ( +70)
Cash re/ittance in transit to 56 ( !',#00)
;d=usted 4alances, !#*2! P 2#2,""+ P 2#2,""+
Pro4le/ !#?!0
a# Branch Boo3s9
5o/e 6ffice account 4alance, Canuar !, #0!! P !2+,000
>e/ittance to the ho/e office (!8',000)
Ship/ents received fro/ the ho/e office (P++0,000 0 P2',000) +0!,000
Credit /e/o fro/ the ho/e office !#,000
Merchandise returned to the ho/e office ( !0,+00)
5o/e 6ffice account 4alance, 7ece/4er 2!, #0!! P 2+7,"00
b# 8econciliation 1tatement
5o/e 6ffice :ooks :ranch :ooks
(Investment in Branch) (Home Office )
<nad=usted 4alances, !#*2!*0!! P 2'7,!00 P 2+7,"00
>e/ittance in transit ( +#,000)
Ship/ent in transit 2',000
;dvertising charged to 4ranch !7,000
;ccounts receiva4le collected 4 56 (#+,-00)
%rror in recording re/ittance !#,000 (!#,000)
!+
;d=usted 4alances, !#*2!*0!! P 2"7,!00 P 2"7,!00
Pro4le/ !#?!!!!
a. P 24
Sales (P #7,000 1 P 22,000 1 P #",000) EEEEEEE. P 8",000
Cost of $oods Sold (P 2",000 1 P !8,000) EEEEEE. (-+,000)
$ross Profit EEEEEEEEEEEEEEEEEE P 2#,000
>ent %&pense EEEEEEEEEEEEEEEEE.. P +,000
Propert Ta& %&pense EEEEEEEEEEEEEE -,000
7epreciation %&pense EEEEEEEEEEEEEE +,000
Miscellaneous %&pense EEEEEEEEEEEEE. !!,000
$eneral Corporate %&pense EEEEEEEEEEEE ",000 (20,000)
8et 9nco/e EEEEEEEEEEEEEEEEEE P #,000

4. P 184
9nitial Transfers EEEEEEEEEEEEEEEE. P !88,000
Cune 9nventor Ship/ent EEEEEEEEEEEE.. !8,000
Propert Ta& Pa/ent EEEEEEEEEEEEE.. -,000
Septe/4er 9nventor Ship/ent EEEEEEEEEE #",000
%&pense ;llocation EEEEEEEEEEEEEE.. ",000
Cash Transfer EEEEEEEEEEEEEEEE... ("2,000)
:alance in 5o/e 6ffice*:ranch ;ccounts (correct) E.. P !80,000
c. =&9#$a. E$/#-+( 0 Ta#.ac "#a$c%
211
!*!0 Cash EEEEEEEEEEEEE. 20,000
9nventor EEEEEEEEEEE. 2",000
%3uip/ent EEEEEEEEEEE !##,000
5o/e 6ffice EEEEEEEE !88,000
!*#0 >ent %&pense EEEEEEEEEE +,000
Cash EEEEEEEEEEE. +,000
#*! Cash EEEEEEEEEEEEE.. #7,000
Sales EEEEEEEEEEE #7,000
Cost of $oods Sold EEEEEEE.. !8,000
9nventor EEEEEEEEE. !8,000
+*! Cash EEEEEEEEEEEEE. 22,000
Sales EEEEEEEEEE... 22,000
!-
Cost of $oods Sold EEEEEEE. !8,000
9nventor EEEEEEEEE !8,000
-*! Miscellaneous %&penses EEEEE. 7,000
Cash EEEEEEEEEE... 7,000
"*- 9nventor EEEEEEEEEEE. !8,000
5o/e office EEEEEEE... !8,000
Prob%em 12211, contin#e.7
7*" Propert Ta& %&pense EEEEEE. -,000
5o/e 6ffice EEEEEEE.. -,000
'*' 9nventor EEEEEEEEEEE #",000
5o/e 6ffice EEEEEEE. #",000
!0*! Cash EEEEEEEEEEEEE #",000
Sales EEEEEEEEEE. #",000
Cost of $oods Sold EEEEEE.. !8,000
9nventor EEEEEEEE.. !8,000
!!*! Miscellaneous %&penses EEEE... +,000
Cash EEEEEEEEEE. +,000
!#*## 5o/e 6ffice EEEEEEEEE "2,000
Cash EEEEEEEEEE. "2,000
!#*2! 7epreciation %&pense EEEEE. +,000
;ccu/ulated depreciation E.. +,000
!#*2 $eneral Corporate %&penses EEE ",000
5o/e 6ffice EEEEEEE.. ",000
d. TARLAC "RANCH
S/a/+*+$/ &, 5-$a$c-a. P&(-/-&$
3+c+*b+# 314 211
$ssets
Cash EEEEEEEEEEEEEEEEE. P 28,000
9nventor EEEEEEEEEEEEEEE. #",000
%3uip/ent EEEEEEEEEEEEEE... P !##,000
;ccu/ulated 7epreciation EEEEEEEE. (+,000) !!8,000
Total ;ssets EEEEEEEEEEE P !8#,000
56#it"
5o/e 6fficeF EEEEEEEEEEEEE.. P !8#,000
F5o/e office 4alance is P !80,000 as co/puted in Part 4 plus the P #,000 net
inco/e for the period.
!"