-

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Opern�s n tirnnct; In v1Urtklnl'I City. On D"c. 3 1 . '101 1 . M1n�n1

Problem 26.AMV ldOI C\'.
::ranch � in the HO books showed n debit ti.alonee of �22.760. ·rhe Interoffice aceciuntt
v.�re m a�me t at tht' � 1nni� of th� yeor F or p11rpo!ll'>S of rf)conclllng IM lnt1rntf1u .
,
�cts WE>re g 1v.-1 1 ·
->-�"'ints, tne 1'\lll.:'\\.'\fl9
t·onsll aa of yoar-end. Mariklna r1tcorderJ tN
,
J. �ts tt> M�mkma '1t l'O�t of 92. 8 1 0 �re in
smd transf� Ofl Jno -· .� I �
: ·0t1 Od J · . �2 · t ti � 1 · ,11111._· ''t11ce IJ,\ltl runt o t � 1<11iki11 ,l anio 1 inl lnc1 1 0 �iR.8fj0 tor rh� fv'l)ct f1
mooms H<ll1� l.'.lft� recorded the said trAnsacMn usln'Q the a1�6t 'rftMhod. Branch '!'" not , .
� cl t� �aio rent :r.ms1tct1on.
:: The �"ti \\ntes off un .:tiltectible nccollnt� of 1 :: 1 2 2 The u l lowa nco for doubtful accountt i�
•

1 la'«ltaine-:: on the boo!<.� of home office Home office is not yet not ified about th& wnt1:-off

..:: Home .:iffi� <.:dtecte<..i AR from Monk1ml's Cl1·1torners urnounting lo 9 1 , 680 . net of 411fr.
aiscount l � HO treat'E'<I the stlld tr:ins�ct1on as 11 i t was a collocti on from its own cuttom"rs
Mankt."\3 \WS not yet nt't1fied of the \ollection.
•

.
.
. : •s the �II\::) of th� home office to blll 1ts branches .1t 20% above cost.
\-\'hat is � unaqusted balance of the HO-current ot B ata ngos branch on Dee. 3 1 . 201 1 ?
.J 502, 1 10 c. :186. 1 86
� 462.i'i'O d ·14.4208

.
Problem 27. The Chubby :3ranch of Shm Company 3ubmilled.the following tr i al balance as o1
Oe-cember 3 1 , 20 13. after its first year of operation!>:
Debit Credit
- .:: ash P 1 0,400
Accounts re<:etvable 63.200
Shrprnents from HO 168,000
'::: xpenses 1 0,800
Sales P1 34,400
'-10 Current . ' 1 1e.ooo �
�al '252,400 25�. 400 -
-
� tnventory end is PS0.400.
Shipme nts to the' br anct;i are billed at 140% of cost.
:
Wl3t is the true net income of the Branch d uri ng 2C. i P

\ . Po.Oc.'11.l
.-
c. 39,t illll D.54,000

PrQblem 28.� S� MANUEVO

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Co.·s hom o office b11Js' R i z al

branch at 1 20% above cost during
2009 and 1 25� er cost cunng 2 0 1 0 . In 2010, go )ds billed at 355,600 were shipped to the
branch Also. dunng t he y:ar. the branch returned 1 1 9,050 worth of defective merchandi'.l� to
t e home ffit.-e. T"':e account unrealized intra-comp.my inventory profit has a balance of 1 E:,240
a: the ena of last year. The branch sta rted to a cq 1 1 1 re merchandise from outsiders during the
year in the amou�t of 54. POO a nd returned derec t1-.e merchandise to the vendor amounting
.

· 9 570. How much is the cvst of goods avai lable for sale. at cost?
to
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3 3 t4.870 c. :11 1 .222

::'. 189, 308 d . :100,420

Problem 29. Joint arrangt-rnent activ i ties tor A, 8 : nd C l 1 a v1ng proved to be unprofitable, the
parties agree to dissolve the 1omt operations. Accounts wit h fne! •angement and joint
o;>erators on the books of A. the m anag ing operator. are as follows just before dissolufion and •

. :q:.J1dation:

Debit Credit
Joint Operation Ca!ih P84.000'
Jomt Operation 45. 50(
B. Capital P 1 0 1 ,500
45.500
C. Capita!

by A to : P24,5�0. A is all?we� s_pecia�

The baiaflce of Joint operatt0n assets on hand is sl lld
•

compensation of P2, 1 00 ror winding up the ventLre: remaining

profits or loss is drstnbutea

�:Jatly. B and C received in final settle,ment

(; B. P73,500 : C, P24,500
A None
8. S. P93.800 . C. PJ/, 800
�\B. 1 1 0,850 : C. P54,950