Reference no: EM132757239

At December 31, 2020, the following information has been collected by Home Company's office and branch for reconciling the branch and home office accounts. The home office's branch account balance at December 31, 2020 is P628,000:

a) On December 30, 2020, the branch sent a check for P47,000 to the home office to settle its account. The branch debited accounts payable. The check was recorded twice by the home office amounting to P4,700, one on December 31, 2020 and another on January 4, 2021.

b) On December 27, 2020 the branch returned P32,000 of limited-edition merchandise to the home office for the January introductory sale. The home office debited the investment in branch account when the merchandise was received on December 30, 2020.

c) The home office allocated two-fifths of its general expenses to the branch. The branch had entered an amount equal to three-fifths by mistake at year-end. The home office recorded in its books general expenses amounting to P27,000.

d) Branch store insurance premium P9,750 were paid by the home office. The branch recorded the amount of P7,590.

e) A furniture costing the home office P17,000 was picked up by the branch as P1,700.

f) Meals and representation of P12,000 charged by the home office were taken twice by the branch in the amount of P1,200.

g) Freight charged on merchandise made by the home office for P5,830 was recorded in the branch books as P8,350.

h) Home office credit memo representing a discount on merchandise for P5,900 was recorded twice by the branch.

i) The home office failed to take up a P7,000 debit memo from the branch representing the defective merchandise returned by the branch.

j) Home office erroneously recorded branch's credit memo at P45,625. The branch collected from the customers of the home office amounting to P54,265.

Problem 1: The unadjusted balance of the home office account in the books of the branch at December 31, 2020 is