name ARCA, MARC RODALE [. care SCORE HOME OFFICE & BRANCH ~ Special Problems the Polo Company of Makati established a branch in Greenhills on June 30, 2008, The branch # £0 recsived sobstantially all merchandise for sale from the home office 9g, merchandise Shipments to the branch amounted to P240,000 that included 2 at ee branch purchased 180,000 additional mecha or cash and reported unsold merchandise for P145,000 at 20, vest end. The branch made sales of 420,000, paid expenses of(P105,090 and remitted to the home office alas proceeds. ‘The allowance for overvaluation of branch inventory account on the home office books showed 3 balance of P22,500, aA adjustont ‘on December 31, 2009. 1, How much of the branch ending inventory was acquired from outsi¢ers? l4s000 ° Cad, ree0) tte, —_ igsove Pe Lgoee ; / 2. What is the branch net income (loss) as far as the home office is concerned? D 420000 cap: Bey. 00000 Posters (30000. ) aid Cnr Sierrs Mes Cues Comers {jov008 m9) Cs oro 57 $90 = + 3, The following data were taken from the books of the Home Office and its branch on December 31, 2008: Home Office books Branch books Shipments from hor 360,000 ‘iow. for overvaiuation on branch inventory Cons Inventory, January 1, 2009 75,000 2009 24,00 ory, Daceiber 34, 2009 > branch aceuires aft of its merchandise from the home office, what is the haat ts nome offic uses to bill merch=ndise shipped to branch? 17500~ (om) 360000 +15008 72500001 Tisax= “35000 ¥ 90° 1 0 361 S00K= T SOOGO x= 20 —_Visayas branch for The following date were t 2009: Manila office Visayas branch sales 530,000 157,500 Inventory, January 1 57,500 22,250 <1 Purchases 410,000 Shipments to branch 105,000 Shipments from home office 126,000 71,250 29,250 Inventory, Gecember 31 Expenses 191,000 50,750 in 2009, Manila office billed the Visayas branch A AIDH of cORhich was (wer by 5% thgn last year's 4. What is the combined net income (loss) of the Manila office and its Visayas branch on December VBrcah 31, 2009? a 520008 p uaaye > rar). (ison 7 ae 000 4 rary Uibare) Cham ease SO0Is yr 325 Bs150, oom Ci41 000) ane a adjustments by the innsc © The brani Merchandise from home office Local purchases Teral ‘The shipments from home effies #6 5. What is the balance of the “Awowance for © December 31, 2009? IT6 (o6= Too00+4 $50000 ~ 84 0v0 = %bove ce) Se $3Go00 ice, the true net micomy uf 2 4 (asco) pas = = 400 ay20ce 12/21/2008 P $4000 o avon X% = 940000 X= 40% 12 office bills its branch for merchandise shipment 9, x hao 44000004 %vow ¥ P 240 2596 above dost. The following arc-sume of the branch as of Decembér 31, 201\w au Home Office bocks Branch books Jsbeo-lo? Inventory, January 2 30,000 48,000 Inventory, December 31 350,000 72,000 Zouvo-BP Shipments from home office ee 220. 0,000 Cor! Purchases 900,000 300,009 ceo Shipments to branch 240,000 Show ‘Allow for overvaluation of branich inventory 68,000 sales 4,200,000 720,000 Operating Expenses 290,000 110,000 The inventory of the branch on December 31, includes goods from outside purchases of P16,000 6. What is the amount of shipment to branch in transit? P 240000 12. eee oe ayoove Ee Pleooo : P 10d, = Lay = 7. What isthe Beerstatement of branch cost of sales? J%<-" 7 D 30000 7 y0000 Cites! ‘soae) pened x ios x Pesos 2. What is the coca m8 net income of the home cites 4 iis bron ‘December 31, 2009? P0000 Cron (ob: : P370000 © sow P Te, peas ones eae eh eae GaFS FBo00. Pa goo oP Crore.) shrowta{ Saves) aaa P [04800 Carus WOU suooud yrtoo? ding follows? partial transacticrs took place between ihe home office Bicol Branch and Cebu Branch. ‘© Upon the instruction of the home office, Cebu Branch affected a fund transfer of P25,000 to Bicol Branch.«Bicol Branch collected @ Cebu Branch’s accounts receivaisie of P35,000 less 2% discount = Cebu Branch paid P250,000 representing the travelling expenses of Mr. Cruz, senior vice president, when the latter attended a regional conference in Cebu. Of the amount paid , 60% was charged to the home office, 25% to Bicol Branch and the balance to Cebu Branch. * Home office shipped merchandise costing P200,000 to Cebu Branch. Freight of P3,000 was paid by the home office. It is the policy of the company to bill its branches at 25% above cost ‘s Upon the instruction of the home office, Cebu Branch reshipped the above merchandise to Bicol Branch. Freight of P1,500 was paid by the Bicol Branch. Had the goocis been shipped directly to Bicol Branch, the freight would have beer 4,200. 9. What is the balance of the Investment in Cebu Branch account in the home office books? (Pascoe) 4: {( s4so0 Cr, P2711 800 C21 seo ) 153000, (ars0202 271800) 110. What is the balance of the Home Office account in the books of Bicol Branch? D 2s000 p ve 44.300 G2S500 Cr. FSTASOR 7 252700 P 374500 = 14 What is the balance of the Home Office account in the books of Co! ae (e 25000 ( Pte C L190 . PIN8o 253000 De 2 sep Cas3000> ieee PAN ge =