ADVAC 2 QUIZ 1

Problem 1:

Sales 95,000
Sales discount (81,000/90%) x 10% 9,000
Net sales 86,000
Cost of sales (95,000 x 70%)+200 68,500
Gross profit 17,500
Expenses:
Selling expenses 5,500
Administrative expenses (95,000 x 5%) 4,750
Samples expenses (P8,200 - 4,550) 3,650 13,900
Net Income 3,600

Problem 2:
HO Account BR. Account
Unadjusted balances 54,700 51,100
#1 (24,000)
#2 30,000
#4 (7,200)
#5 (2,400)
Overstaement of income (7,200)
Adjusted balances 47,500 47,500 -

Cebu Branch 24,000

Davao Branch 24,000

DavaoBranch 30,000
Aklan Branch 30,000

Home Office 7,200

Accounts Receivable 7,200

Shipments from Branch 2,400

Davao Branch 2,400

Branch Income 7,200

Davao Branch 7,200

Problem 3:
 ADVAC 2 QUIZ 1

Problem 1:

Home office Account, before branch profit 480,000

Add:
Sales 2,300,000
Cost of sales
Shipment from Home Office 1,850,000
LesS: Ending Inventory 255,500 1,594,500
705,500
Operating expenses 235,000 470,500
Home office Account, 12/31/16 950,500

Problem 2:

Sales 95,000
Sales discount (81,000/90%) x 10% 9,000
Net sales 86,000
Cost of sales (95,000 x 70%)+200 68,500
Gross profit 17,500
Expenses:
Selling expenses 5,500
Administrative expenses (95,000 x 5%) 4,750
Samples expenses (P8,200 - 4,550) 3,650 13,900
Net Income 3,600

Problem 3:
HO Account BR. Account
Unadjusted balances 54,700 51,100
#1 (24,000)
#2 30,000
#4 (7,200)
#5 (2,400)
Overstaement of income (7,200)
Adjusted balances 47,500 47,500 -

Cebu Branch 24,000

Davao Branch 24,000

DavaoBranch 30,000
Aklan Branch 30,000

Home Office 7,200

Accounts Receivable 7,200

Shipments from Branch 2,400

Davao Branch 2,400

Branch Income 7,200

Davao Branch 7,200

Problem 4: Refer to soln in Problem 8-2