Reference no: EM132839945

Question - Alladin Co. operates a branch in Marawi City. At close of business on December 31, 2015, Marawi Branch account in the home office books showed a debit balance of P451,540. The interoffice accounts were in agreement at the beginning of the year. For purposes of reconciling the interoffice accounts, the following facts were ascertained:

A computer costing the home office P7,000 was taken up by the branch as P700.

Insurance premium of P1,350 charged by the home office was taken up twice by the branch.

Freight charge on merchandise made by the home office amounting to P2,250 was recorded in the branch books as P2,430.

Home office credit memo representing discount on merchandise for P1,600 was not recorded by the branch.

The branch failed to take up a P1,400 debit note from the home office representing the share of the branch in advertising.

The home office inadvertently recorded a P6,000 remittance from its Marawi branch as a remittance from Davao branch.

Required -

Find the balance of the Home Office account before adjustment as of December 31, 2015?

Find the net adjustment in Marawi's books related to the Home Office account?

Find the adjusted balance in Marawi's books related to the Home Office account and the Marawi Branch Account in the Home office books?