Hatdog

The year-end balance of the “Investment in Mandaluyong Branch” in the home office

books has a balance of P225,770. The following information was determined during

the reconciliation:

• Office equipment costing the home office P3,500 was recorded by the branch as

P300.

• Insurance premium of P675 charged by the home office was taken up twice by

the branch.

• Freight charge on merchandise made by the home office for P1,125 was recorded

in the branch books as P1,215.

• Home office credit memo representing a discount on merchandise for P880 was

not recorded by the branch.

• The branch failed to take up a P700 debit memo from the home office representing

the share of the branch in advertising.

• The home office inadvertently recorded a remittance for P3,000 from its Makati

branch as a remittance from its Mandaluyong Branch.

The year-end balance of the “Investment in Mandaluyong Branch” in the home office

books has a balance of P225,770. The following information was determined during

the reconciliation:

• Office equipment costing the home office P3,500 was recorded by the branch as

P300.

• Insurance premium of P675 charged by the home office was taken up twice by

the branch.

• Freight charge on merchandise made by the home office for P1,125 was recorded

in the branch books as P1,215.

• Home office credit memo representing a discount on merchandise for P880 was

not recorded by the branch.

• The branch failed to take up a P700 debit memo from the home office representing

the share of the branch in advertising.

• The home office inadvertently recorded a remittance for P3,000 from its Makati

branch as a remittance from its Mandaluyong Branch.