User Account

All Pages

Compute the branch inventory on december at cost

Assignment Help Financial Accounting
Reference no: EM132999141

The LEGIT COMPANY established a BRANCH in MAKATI CITY on June 1, 2019. The BRANCH is to receive substantially all merchandise from the HOME OFFICE. During the remainder of 2019, shipments to the branch amounted to P144,000 which included a 20% mark-up on cost. The BRANCH purchased P36,000 additional merchandise for cash and reported unsold merchandise of P48,000 at year-end.

The BRANCH made sales of P234,000, paid expenses of P57,600 and remitted to the HOME OFFICE all sales proceeds. The allowance for overvaluation of branch inventory account on the HOME OFFICE books showed a balance of P6,000 after adjustment.

Problem 1: Compute the: (1) BRANCH inventory on December 31, 2019 at cost, and (2) the BRANCH net income as far as the HOME OFFICE is concerned:

a. (1) P42,000; (2) P62,400

b. (1) P36,000; (2) P62,400

c. (1) P41,600; (2) P44,400

d. (1) P50,000; (2) P79,500

Reference no: EM132999141

Questions Cloud

Solve the cost of equity using the capital asset pricing : Ayoba Limited uses a combination of shares, Calculate the weighted average cost of capital, using the Gordon Growth Model to calculate the cost of equity.
Prepare the income statement for dc company : Prepare the 20x4 income statement for DC Company. Presented is financial information related to the 20x4 operations of DC Company.
What strategic direction must a company go in to make profit : List and explain at least 4 recommendations to increase profit in an organization? What strategic direction must a company go in to make a profit?
What is the law of diminishing returns : What happens when to the bond market when the stock market goes down? What is the law of diminishing returns and how does it relate to portfolio?
Compute the branch inventory on december at cost : Compute the: (1) BRANCH inventory on December 31, 2019 at cost, and (2) the BRANCH net income as far as the HOME OFFICE is concerned
Could write the general journal : Could you write the general journal? On the last day of the month (30 June) the business traded both of the delivery vans in for two larger vans worth $120 000.
How much is the total cash proceeds from issuance of shares : Safety Company issued 10,000 P1,000 bonds. How much is the total cash proceeds from the issuance of shares from the exercise of warrants?
Prepare and present internal and external reports : In this project, you will demonstrate your mastery of the following competencies: Prepare and present internal and external reports
Provide the journal entries to record allocation of profit : Provide the journal entries to record the allocation of profit under method 2: fixed capital accounts. Show the balance of the partner's equity accounts.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Why are stock valuation models dependent upon expected

Why are stock valuation models dependent upon expected dividends, future dividend growth and an appropriate discount rate?

  Find what is the particular growth rate for the next year

Find What is the particular growth rate for the next year, at which company will need zero eternal financing (EFN = 0)? What is the internal growth rate?

  Calculate the estimated cost of the inventory on may

Utley Co. prepares monthly income statements. Inventory is counted only at year end. Calculate the estimated cost of the inventory on May 31.

  What are the net assets of campbell

Sterling Co. recently underwent a sell-off of its home gardening and repair subsidiary, Campbell Co., to an independent party. If Sterling recorded a gain of $62,755 on the carve out and received $85,540 cash for the sale, what are the net assets of ..

  Prepare the manufacturing account for the year ended

Sakala Manufacturing Prepare the manufacturing account for the year ended 31 December 2019. Clearly label the prime cost and cost of production.

  Show the consolidation adjustments

Show the consolidation adjustments to eliminate the intragroup transactions and unrealized profits for both financial years 2019 and 2020

  How much money must set aside today for the purpose

How much money must you set aside today for this purpose if you can earn 9% on your investments? You would like to give your daughter 50000

  Find ajax inc treasury stock account shows a balance of

Find Ajax, Inc.'s treasury stock account shows a balance of? When it began business in 2026, Ajax, Inc. issued 150,000 shares of $1 par stock for $1,500,000.

  Average returns and variances and standard deviations

Returns Year X Y 1 20 % 15 % 2 23 35 3 9 14 4 – 16 – 21 5 10 25 Using the returns shown above, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y.

  How does the income or loss compare to the original income

How does the income or loss compare to the original income statement? Explain the importance of the matching concept - You do not need to include the balance

  Prepare journal entry to record accrued interest at december

Create the journal entry to record the accrued interest at December 31, assuming adjusting entries are made only at the end of the year

  What is the amount of cash collected from the customers

Bad debts are written off against the allowance for doubtful debts. What is the amount of cash collected from the customers during the year ended June

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd