Reference no: EM132998789

A reconciliation of the Inv. In Branch account in the head office of PRTC Company and the Home Office account carried on the books of its CDO branch showed the following discrepancies at December 31, 2019.

1. Collection of branch account receivable by the home office, P800. The branch was not notified.
2. Shipment in transit to branch on December 31, 2019, P3,200.
3. Acquisition of furniture by the branch, P1,200. The furniture account is to be maintained on the home office books. The home office had not been notified of the acquisition.
4. Return of excess merchandise by the branch but not received yet by the home office, P1,500.
5. Cash remittance by the branch on December 31, 2019, P500. This was still in transit
6. The Home Office account on the branch books has a credit balance of P44,000 at December 31, 2019.

Problem 1: COMPUTE: (1) the unadjusted balance of the Inv. in Branch account on the home office books at December 31, 2019; (2) the adjusted balance of the reciprocal accounts on December 31, 2019.

a. (1) 50,100; (2) 46,000
b. (1) 49,600; (2) 46,400
c. (1)P49,600; (2) P47,200
d. (1) 47,400; (2) 40,000