I.

The following are the postings to the inter-office accounts of LUCY Corporation of 2013, prior to the closing of the books.

(Home Office Books)

Branch Current
           
Jan. 1 Balance P15,600 Oct. 1 Remittance from branch P 18,700
Feb. 10 Shipments to branch 8,000 Dec. 5 Goods returned by the branch 780
Apr. 30 Branch expenses 9,800 31 Collection on branch receivable 6,500
Nov. 20 Shipments to branch 18,300 25,980
Dec. 28 Shipments to branch 20,100
29 Replenishment check for branch 11,500
83,300
57,320

(Branch Books)
Home Office Current
           
Sept. 30 Remittance to home P18,700 Jan. 1 Balance P15,600
Dec. 2 Goods returned 7,800 Feb. 15 Shipments from home office 8,000
30 Home office expenses paid 9,500 May. 10 Expenses paid by home 9,800
36,000  Dec. 5 Shipments from home office 13,800
47,200
11,200
Required:

1. Reconciliation worksheet for inter-office accounts.

(Home Office Books) (Branch Books)

Investment in Branch Home Office
Account Account
(D 11,20
Balances bef. Adjustments 57,320 r) 0 (Cr)
Additions:
24,60
Shipments from home office 0
11,50
Replenishment check for branch 0
Accounts receivable collected
(6
by home office ,500)

Deductions:
Goods Returned by branch (7,020)
Home office expenses paid by
branch (9,500)  
(D 40,80
40,800 r) 0 (Cr)

2. Adjusting entries both on the home office and branch.

BRANCH OFFICE

Shipments from home office- In Transit 24,600

Home Office- Current 24,600

Cash 11,500
Home Office- Current 11,500

Home Office- Current 6,500

Accounts Receivable 6,500
HOME OFFICE

Goods Returned- Branch Office 7,020

Investment in Branch 7,020

Home Office Expenses 9,500

Investment in Branch Office 9,500