Chapter 3~ Home Office and Bran, ton MULTIPLE CHOICE QUESTIONS PROB. 341 (AICPA) sn in wich i establishes separ ‘An enterprise uses a branch accounting 85 peat ‘Sal abating tems for ‘home ies rer oie an ‘ portions Which ofthe following statements aout tis arangement i alse a 1c home office account on the books of a branch office represents the seme te nome fein net ast ofthe rach. 1 Ro Sumer ote set on he ks fhe home off epee csp cate banc oie in eet ast ofthe Hoe of eRe RUNS and anche coum are sires acon rst clint te preparation of te enters finan Stone ttre presen in azordnce with GAAP. trues betwen te hme office and be epertn of the eterpie’'s Fan Shtomen that arepresedinscdasewith GAAP. PROB. 3-2(AICPA) ‘On December 31, 2015, the Branch Current in the Home Office book: balance of P50,000. The following fats are ascertained: 1. Merchandise bi 12,500 is in transit on December 31 from the hhome office to the branch, 2 3 4. Branch profit for December Pra i ‘was recorded by the home office at 5. The branch 4 supe of P1500 othe home office but : Hem etre est hep sume all other transactions have been propery. receded unadjusted balance ofthe Home erie nad book unajuted ele ofthe Hone Office Cae cent ont branch 0 0 0 10 | | | Chapter 3~ Home Office and B seta 103 PROB. 3.3 (RPCPA) ‘The fol und in your examinatir between the Home Office andthe Butuan Branchs “'* ¥tPant_ accounts from Home Office amounting to PS3,960_ was re seni maretng expense of anther branch was charge by ce. Butuan recorded a de! 75,000 twice, Home Ofc recorded cash transfer of 65,70 fom Butuan Branch as ‘coming from Davao Branch. ’ : ton inventory transfers from Home Orfice of, a. ‘The net adjustment in Butuan’s books related to the Home Office account is a. 33,335) b. Before the above discrepancies were given effect, office books of its Butuan Branch Current aceot 165,920. The unadjusted balance in the Butuan Brat Office Current account must be: a 92,336‘4. What is the journal entry to record receipt of shipment in the books oF b. (Cagayan de Oro branch? chapter 3- Home Office and Bran 45,000 45,000 45,000 6,000 51,000 45,000 6,500 51,500 45,000 4,500 49,500 ‘What isthe adjusting journal entry to be recorded by Iloilo branch? Home office eurent 4. Shipment fom home office Freigitin om Home ofc curent 51,500 45,000 6,000 47,000 45,000 2,000 35,500 45,000 6,000 4,500 45,000 6,000 51,000 Chapter 3$—Home fice and Branch PROB. 3-5 (RPCPA) Vivaldi & Co. has sever Cebu, Mi te recorded by home office? 45,000 2,000 45,000 “4000 45,000 31,000 51,000 1,000 45,000 55,500 45,000 10s0 saving 0 charge to Davao anc by Ce ach. P100 charge to Davao branch by Head Office 100 to bs equally charge among head office, Cebu branch and Davao branch, PROB, 3-6 (RPCPA) Gershwin ine, opens a sales agency in Cebu City and a working fund of P20,000, is established on imprest basis, The first payment from the fund is P3,000 fn ‘ent The transaction shouldbe recorded by the home office as follows: Debit Credit a Noenty be Rent 5,000 Cash 3,000 Se a 3,000 forking fu 3,000 4. Cebu agency 3.000 cot 3,000 PROB. 3-7 (AICPA) The following information pertains to i Sete a shipments of merchandise from Hom Home office's cost of merchandise Inracompany iin P 160,000 Sales by branch 200,000 Unoldmerchandise at branch, 12612014 750.000 (Chapter 3 Home Office and Branch 107 PROB. 3-8 (RPCPA) Selected balances from the Amorsolo Company’s Branches A and B are as follows: Branch A _Branch B P21,000 0 The net profit of branch A is: a. 16,000 b. 21,000 © 15,000 4. 18,000. . The balance ofthe Home Orie account of Branch A on January 1, 2014 is: b. 64,000 a. 75,000 The balance ofthe Home Ofc accour 80,000 b. 64,000 © 78,000 4. 95,000 ranch B on January 1, 2014 is(Chapter 3 Home Office and Branch 4 The balance of the Branch Current account of Branch Bon December 3), PROB. 3-10 (RPCPA) 2014 is: tonal Home Company ships and bills merchandise tits provi 1. The br ra 7 “The entry in Branch B records to update the reciprocal account Home Orie Current on Devernber 31,2014 i: Debit Credit P1900 90,000 120,000 62.500 8,100 112,500 PROB. 39 (RECPA) PaaS ~P202:500 (On December 31, 2014, the following data are inthe records of the Angeles Ci pee eee branch ofthe Big & Small Company: Pe erares eee Pty exsh P 94.500 Pp eee cs state oa The net profit fie branch was Mase Inventory, Dic. 75/500 2 22500 ‘Acets. Ree. Doc. 31, 21 138,800 1400 ‘Mase Inventory, 81,000 © 21,300 Sil 272700 4. Answer not given ‘4800 6. Inthe home office books, the Branch Curent account ‘hota! teohah nee ce a nthe home office books, the Bas account Shipment from Home Office Expenses (pid by home office) ®. Hall cash collections in 2014 were remited to ome office, the otal remit a amount 262300 266,800 © 261300 4 267.100 Answer not givenno Chapter 3— Home Office and Branch no, apr oe fee PROB. 3-11 (Adapted) 100,000 125,000 100,000 25,000 125,000 125,000 chapter §~ Mame Office and Branch eS—Home Ofesent tree PROB. 3-13 (RPCPA) lr ipments, Seton 260 Mése From Home Office (at bills price) Early last year, a Manila-based company established branch i lilo Cit it shipped merchandi ied the branch for 'P72,500, What is the total goods available for sale by the branch at eos? 416250 b. 422,500 ©. 435,250 485,000ua Chapter 3.960) 17,600 from Main store 600 4,800 Main store ‘actual branch ineome for 201 ns ofthe statement of fina on a cost bass, assuming the a Wat was dearth 4.800 b 6320 © G80 a 680 th of inyenory und at he end of 214 the min soe store andthe banch sould spear on te te et aane sheet at December 31,2014 a. 15,160 b 15100 e 16040 17200 ee Y cures owing she income sateen esi eacingSne 30,2014, X¥2 Bech in Cebu City for thes e200 51000 to Inventory, June 30 eed From i¥0.%000 Fr Outer 10.000 $5000 _sis000 Geos profit i Geo THs Net pote sst9 mo 720060 The home office ships meando, nd il, the Bach os. The rent ofthe bach fie rs ona 2% ‘was paid by the home office. - : The home office net profit fom its Branch Office in Cebu Cit ie months ending June 30, 2014s ity, forthe a. 125,000 b. 124,000 139,000 4,109,000 'b. ‘The inventory of the Branch ofie in Cebv City at os, as of June 30,2018 is: a. 85,000