SOAL 1

Plastic Products Corporation created a branch to market its plastic window signs for automobiles. The
balance sheets of the home office and branch contained the following amounts on December 31, 19X6:

During the year, Plastic Products Corporation shipped $50,000 of inventory to the branch and billed it
$80,000. The branch resold 60 percent of the inventory before the end of the period.
Required
1. Give the eliminating entries needed to prepare a balance sheet for Plastic Products Corporation as
of December 31, 19X6.
2. Prepare a December 31, 19X6, balance sheet for Plastic Products Corporation.
SOAL 2
Trial balances for Alpine Company’s home office and Resort branch on December 31, 19X4, are as follows:

The Resort branch conducts all its operations separately from those of Alpine’s home office. In 19X2, the Resort
branch paid $44,000 to the home office for land that Alpine had purchased for $20,000 several years earlier.

Required
Complete a December 31, 19X4, workpaper for the preparation of financial statements for Alpine Company
SOAL 3
Dependable Appliance Corporation is considering establishing a number of sales branches to assist in
selling its product line. As an experiment, it established a branch in New York City in 19X2 and has
operated it for three years. During 19X5, Dependable shipped $60,000 of inventory to the branch and billed
it for $90,000. On December 31, 19X5, the branch held $18,000 of inventory purchased by the home office
for $12,000. The following amounts were reported in the trial balances of the home office and the branch
on December 31, 19X5:

Required
1. Prepare and complete a workpaper as of December 31, 19X5, to develop financial statements for
Dependable Appliance Corporation.
2. Prepare a 19X5 income statement and balance sheet for Dependable Appliance Corporation