Advanced accounting by baysa lupisan chapter 08

a Home Office 20,000Branch Office Books... Honda Sales, Inc.Statement of Recognized Income and Expenses - Branch For the Year Ended December 31,2008 Cost of sales: d Honda Sales, Inc.. D

Office Supplies Expense 300

(a) Home Office 20,000

Branch Office Books

Honda Sales, Inc.

Statement of Recognized Income and Expenses - Branch

For the Year Ended December 31,2008

Cost of sales:

(d)

Honda Sales, Inc

Statement of Financial Position - Branch

Less: Accumulated Depreciation 8,000 32,000

Liabilities

Home Office (300,000 - 150,000 + 62,000) 212,000

Exercise 8- 5

Home Office Books

Branch Office Books

December 31,2008

HO Books Branch

BooksBranch Acct HO Acct

Adjustments;

(b) Collection of home office accounts rec’l 2,500

(c) Error in recording the net income of branch

Home Office Books

Cash 20,200

For the Year Ended December 31, 2008

Cost of goods available for sale P94,000

Volvo CompanyStatement of Financial Position - Branch

December 31, 2008Assets

For the Month Ended January 31, 2008

Cost of goods Sold:

Shipments from Home Office (102,000 + 12,500 + 6,000) P120,500

Less Merchandise Inventory, December 31 (9,800 + 600) 104,000 46,500

Net Loss P 5,600

Jazz CompanyStatement of Financial Position - Bacolod Branch

January 31, 2008AssetsCash (15,000 - 9,000 + 26,000 - 14,500 - 12,500 + 16,000 - 10,000) P 11,000Accounts Receivable (62,000 + 26,000 - 26,000 – 17,500) 44,500

For the Month Ended January 31, 2008

Cost of Goods Sold:

Less Shipments to Branch (102,000 + 12,500 + 6,000) 120,500

Less Merchandise Inventory, December 31 445,000 210,500

Jazz CompanyStatement of Financial Position - Home Office

January 31, 2008AssetsCash (150,000 - 15,000 + 400,000 – 362,000 - 92,000 + 10,000) P 91,000Accounts Receivable (420,000 - 26,000 + 346,000 - 400,000) P340,000

Less Allowance for Uncollectible Accounts (12,000 - 1,500) 10,500 329,500

Branch (143,000 - 9,000 - 1,500 + 12,500 - 10,000

Store Furniture and Fixtures (150,000 + 9,000) P159,000

Less Accumulated Depreciation (46,000 + 1,350) 47,350 111,650

Total Assets P1,117,650

Liabilities and Shareholders’ Equity

Requirement 3

Jazz CompanyCombined Statement of Recognized Income and Expenses for Home Office and Branch

For the Month Ended January 31, 2008

Cost of Goods Sold:

Less Merchandise Inventory, December 31 549,000 257,000

January 31, 2008Assets

Less Allowance for Uncollectible Accounts 10,500 374,000

Liabilities and Shareholders’ Equity

Accounts Payable P 307,000

Combined IncomeStatement

Combined BalanceSheet

CGS 300,750 128,700 429,450

939,000 275,700Credits

January 31, 2008

Home OfficeBooks

Branch BooksBranch Acct Home Office Acct

Add (deduct);

Merchandise shipment for P16,560 recorded

Collection of home office account 750

Understatement of 1994 depreciation ( 540)

Remittance to home office in transit (16,000) _

c Branch Current 116,990

Requirement 3

Ford CompanyReconciliation of Current Account

December 31,2008

BranchAcct

Home OfficeAcct

Insurance premium recorded twice by branch ( 675)

Share of branch in advertising not recorded 700Error in recording remittance ( 3,000)

Discount from Home Office 800

4 Error in recording Br net income (1,080)

P179,920 P 179,920

P42,950 P42,950

27 B

Merchandise available for sale P 66,000

Beg Balances P 30,670 P 30,670

3 Home office expense paid by branch (5,700)

3 Home office expense paid by branch (5,700)

P 127,570 P 127,570

32 A Marketing Expense of another branch charged to Butuan P (10,000)

Net adjustment in Home Office Banch account P (75,700)

Inventory transfer recorded twice by Butuan 75,000Error in recording debit memo 4,650 ( 90)