AA1 - Chapter (2008 edition) page 19 Problem – 10 Triple N Commercial Working Paper for Combined Financial Statements for Home Office and Branch For the Year Ended December 31, 2008 Debits Cash Accounts Receivable (net) Inventory – Home office Branch Fixed Assets (net) Branch Current Purchases Shipments from Home Office Sundry Expenses Income Tax Credits Accounts Payable Mortgage Payable Income Tax Payable Home Office Current Sales Shipments to Branch Allowance for Overvaluation Ordinary Share Capital Retained Earnings Trial Balance HO Branch 50,100 1,260 350,000 135,660 64,400 32,340 210,000 163,120 532,000 294,000 119,980 83,440 1,489,600 546,700 30,500 67,500 10,500 Adjustments HO Branch a 5,320 b 2,100 c ( 2,500) a (5,320) d 14,000 f 23,667 23,667 f 23,667 144,200 434,000 308,000 2,940 600,000 46,660 1,489,600 e 10,976 24,576 e 10,976 b 2,100 c ( 2,500) d 14,000 392,000 546,700 23,667 24,576 Adjusted Trial Balance HO Branch 55,420 3,360 350,000 133,160 64,400 32,340 210,000 157,800 532,000 308,000 119,980 83,440 23,667 10,976 1,513,267 571,276 30,500 67,500 23,667 434,000 308,000 2,940 600,000 46,660 1,513,267 Branch Income Statement Debit Credit Home Office Income Statement Debit Credit 64,400 a 2,940 29,400 Combined Balance Sheet Debit Credit 58,780 483,160 70,000 32,200 102,200 210,000 c 157,800 532,000 b 28,000 280,000 83,440 10,976 119,980 23,667 10,500 41,000 67,500 34,643 10,976 157,800 392,000 c 157,800 392,000 b a 571,276 Branch net income Home Office net income Inventory, end: Home Office Branch [(P21,420 + P14,000) / 110%] Total Eliminations Debit Credit P 70,000 32,200 P102,200 434,000 280,000 28,000 2,940 188,740 188,740 403,816 20,384 424,200 740,047 784,000 854,140 424,200 424,200 43,953 784,000 784,000 854,140 600,000 46,660 789,803 20,384 43,953 854,140 AA1 - Chapter (2008 edition) page 19 ...AA1 - Chapter (2008 edition) page 19