As of January 1, 2021, the following are the account balances of the Bohol Branch of AMARANTH CO.

Cash P15,000 Accu. Dep. P 6,000

Accounts receivable 22,000 Accounts payable 34,000
Merchandise inventory 30,000 Home office 45,000
Furniture and Fixtures 18,000
P85,000 P85,000

The following is a summary of the transactions of the branch for the month of January 2021:

a. Shipments received from home office P22,000

b. Sales on account (50% mark-up on cost) 60,000
c. Collections, net of 2% discount 66,640
d. Purchases on account 10,000
e. Payments to suppliers 19,000
f. Remittance to home office 36,000
g. Expenses incurred (of which P1,800 is still unpaid as of January 31,
2020; depreciation of P3,600 included) 19,500
The periodic inventory method is being used.

Required:
1. Journal entries on the books of the branch and the corresponding entries on home office books.
2. Closing entries on the branch books
3. Income statement and balance sheet of the branch for 2021.