On December 3, 2009, the home office of Good Office Supply Company recorded a shipment of

merchandise to its Dagupan Branch as follows:

Dagupan Branch P30,000
Shipments to Branch P25,000
Unrealized Profit in Branch inventory 4,000
Cash (for freight charge) 1,000
The Dagupan branch sells 40% of the merchandise to outside entities during the rest of December
2009. The books of the home office and Good Office Supply are closed on December 31 of each
year.
On January 5, 2010, the Dagupan branch transfer half of the original shipment to the Baguio
branch, and the Dagupan branch pays P500 as the shipment.
Required:
1. Provide the journal entries on the books of Dagupan Branch in respect to January 5, 2010
transfer.
2. Provide the journal entries on the books of Baguio Branch in respect to January 5, 2010
transfer.
3. Provide the journal entries on the books of Good Supply Company in respect to January 5,
2010 transfer.

Chwn Co. is currently preparing its combined financial statements for the year ended December
31, 20x1. As of this date, the “Investment in branch” account has a balance of ₱380,000 while the
“Home office” account has a balance of ₱528,000. The following information has been gathered:

➢ The home office allocated unpaid utilities expenses amounting to ₱40,000 to the branch
which the branch did not record in full. Instead, the branch sent a wrong adjusting memo to the
home office reducing the charge by ₱10,000 and setting up a liability for the remaining amount.

➢ The home office erroneously credited the branch for a return of shipment of merchandise
worth ₱100,000. The branch did not make any return of merchandise.

➢ The branch mistakenly received a copy of the home office correcting entry for item (b)
above dated January 3, 20x2 and entered a credit in favor of the home office on December 31,
20x1.

➢ The branch mistakenly sent the home office a debit memo amounting to ₱12,000 for an
apparent remittance of collections which did not happen. The home office did not record the debit
memo.
1. Provide the reconciling entries in the books of home office.
2. Provide the reconciling entries in the books of branch.