Unrealized mark-up

Beginning xxxx < --- mark-up on branch's beg. Inventory (fro

Add: M-up on current shipments xxxx < --- diff. bet. SFHO &
Less: M-up on mdse. returns/transfer to other branch (xxxx) STB
Mark up on COGAS of branch (from HO) xxxx
Realized mark-up on branch inventory - sold to outsid (xxxx) < --- M-up on COGS of branch (from HO)
Ending balance (adjusted balance) 800 < --- mark-up on branch's end. Inventory (fro

Home Branch Unrealized Branch Combined

Office (per books) Mark-up per GAAP per GAAP
Sales 120,000 60,000 60,000 180,000
Purchases 70,000 11,000 11,000 81,000
Shipments from HO - 19,200 3,200 16,000
Shipments to branch (16,000) -
Beginning 40,000 30,000 4,000 26,000 66,000
COGAS 94,000 60,200 7,200 53,000 147,000
Ending (40,000) (20,000) (2,800) (17,200) (57,200)
COGS 54,000 40,200 4,400 35,800 89,800
Gross profit 66,000 19,800 4,400 24,200 90,200
Expenses (28,000) (12,000) (12,000) (40,000)
Net income 38,000 7,800 4,400 12,200 50,200

120%
Home Outside Total
@ billed @ cost
Beginning 24,000 6,000 30,000
Ending 16,800 3,200 20,000

BEST CO.

@ billed @ cost Mark-up CLOSING ENTRIES

Beginning inventory 165,000 132,000 33,000 Loss on Fire
Shipments from home 110,000 88,000 22,000 Merchandise invento
Purchases 7,500 7,500
COGAS 282,500 227,500 55,000 Sales
COGS (132,500) (107,500) (25,000) Income summary
NASUNOG!!!!! 150,000 120,000 30,000 Loss on Fire
150,000 Sales returns
Sales 169,000 Purchases
Sales returns (3,750) Shipments from Hom
Net sales 165,250 Merchandise invento
Sale of goods from outside suppliers
20% 7,500 1,500 9,000 Home office
Sale of goods from HO 156,250 Income summary
Mark-up by branch to customers 25% 31,250
 Goods sold at billed price 125,000 CLOSING ENTRIES
Mark-up by HO to branch 25% 25,000
Cost of goods sold acquired from HOME 100,000 Income summary - b
Investment in branch
@ billed @ cost/true
Net sales 165,250 165,250 Unrealized mark-up
COGS (132,500) (107,500) Income summary - b
Gross profit 32,750 57,750
Loss on fire (150,000) (120,000)
Net loss (117,250) (62,250) Unrealized mark-up
Income summary - b
VENTURES
Branch books
Sales on account 148,000
Sales on cash basis 44,000
Sales 192,000
COGS (100,000)
Gross profit 92,000
Expenses (100,000)
Net income (loss) (8,000)

COGS: @ billed
Purchases 52,000
Shipments from Home Office 108,000
COGAS 160,000
Ending inventory Home (48,000)
Outside (12,000) (60,000)
COGS 100,000

Unrealized mark-up
Beg. None
SHFO 18,000
COGAS 18,000
Ending (8,000)
Realized mark-up - COGS 10,000
h's beg. Inventory (from home)

f branch (from HO)

h's end. Inventory (from home)

CLOSING ENTRIES - BRANCH BOOKS

Loss on Fire 150,000
Merchandise inventory 150,000

169,000
Income summary 117,250
Loss on Fire 150,000
Sales returns 3,750
Purchases 7,500
Shipments from Home office 110,000
Merchandise inventory 15,000

Home office 117,250

Income summary 117,250
CLOSING ENTRIES - HOME OFFICE BOOKS

Income summary - branch 117,250

Investment in branch 117,250

Unrealized mark-up on branch inventory 30,000

Income summary - branch 30,000
Destroyted by FIRE

Unrealized mark-up on branch inventory 25,000

Income summary - branch 25,000
Realized mark-up