↳

Advertising
↳ must allocate to branches

↳ Home-maliwan lang sa Kanya at

matitive ay allocate
yung to

-
-

~ recording
nakanino and PRE doon
R
Kung and
depreciation
Expense kng
PPE Kanino nakivabag
/record) Branch (ownership!
:

Ex home

pays For PPE

. physical PPE
PPE .
no record
cask
↳o But not all the time in v Depre
& reciprocal act -> at end must be balance Accumulated Depre Home office
Home Office Branch
Equity
a .
Branch spends a 20K checks to home of File K means
nag remitt

Cash in Bank 20000 Home OF Fice Equity 20000

20000
Branch current Branch current 2005

b Home office pays branch

Branch Current 3500 3500

Expenses

cast 3500 Home OFFice 3500

Equity

C Home OF FiC
.

Expenses 1200 1208

Ho me Office Equity
1200 1200
Bran cash

p shipments to branch (periodic

Branch Current 32050 shipments tr Ho 32008

to 3200 32000
shipment Branch No Equity

E Branch returns merchandise costing

shipments to Branch 15000 Ho Equity 15000

Branch Current 15000 shipments Fr HO 15000

F Home Office acquires branch Furniture For 5500 Branch Fixed assets are carried on home office books

F9F 5508
cash 5588 K no entry

6 10 % Dep
Branch current 550 Depre Expense 550

558 Home Office 550

Accum Depre Equity

A Branch reports a net loss Of 2000

Branch Income 2600 Home Office Equity 2 600

loss/195
2000
Branch current 2000 Branch Summary
 ①

To either adjust or close ->

nindipweding both
Home OFFice Branch

① Branch Current 300 000 Shipment Fr

. HO 300000

shipment to Branch 300 000 Ho Equity 300 000

⑫ A counts receivable 390

Sales 390

③ Expenses 74008
cash 72050
2000
Accounts payable

cash 288000

Sales Disc 0 ou

ACC Rec 294000

cash 158 Home Office Equity 150 000

150 150 o
Branch Current cash

FGF 40 000

cash Ho oo

Depreciation Expense 8000

Accum Depre 8008

↑ close
:

for the period (accumulate) ↑ as Of

Branch Statement of Financial Position

Profit or Loss

sales 3900ro Asset Liability 9 Equity

Less
:
Sales Discounts
-
, 000 cash 24000 AIP 2000

Net sales 384000 A/R 9400 Hoequity -

shipments 300

Less Remittance
:

Less :
WOS mI ,
end 20008 (150)
-

Branch Profit
Be
shipments Er Ho F GE 40000 Add
:

.
Ge
-

TLAS #GF-AccumDep (8000)

Less
:

EI -000 214000
-
-
bross Income 144000

(74000)
:

Less Expenses

Depreciation Expense
Branch profit wood
Closing Entry temporary accounts
-

sales 390000

Merchandise Iny End 60 000

,

shipments tr Ho 300000

Expenses 74800

Depreciation Exp 8000

sales Discount 6088

Income summary 42000

 - all recording to home

o siya and bumili

who initiates the transaction

Home Office M Branch ↑ 25K X 98

.

a .

FGF Home Office Equity 24500

Branch Current Accounts Payable 24500

outside the
D . Branch Current 24500 A counts
payable 24500
R
boy discperio
24500 24508 ↳
cash Ho Equity purchase disc
10 St
.

a Furniture 9 Fixtures 24500

Accounts Payable 24500 I * IF Home Office land yund record

24500
B Accounts Payable
cash 24500

C Branch Current 2450 Depreciation Expense 2450

Home 2450
Accumulated Depreciation 2458 office Equity
D F9F new ,
400
Loss on Exchange
7
05O

Accumulated Depreciation 2450

Cash 25000 (40x-15K)

FGF ,
old 245 00
.

↳
F9F ,
old 24500 bago politan

Less :

AID (2450) tanggalin muna

CV 22050 and luma

Trade in allow -
15000

loss on Exchange 7050