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ASTATIC UNSTABLE Co. is currently preparing its combined financial statements. At December 31, 20x1, the home office shows a ?728,000 balance in its "Investment in branch" account. The following information has been gathered during the reconciliation process:
(a) A credit memo sent by the home office to the branch amounting to ?48,000 was not recorded by the branch.(b) A debit memo sent by the home office to the branch amounting to ?36,000 was not recorded by the branch.(c) A credit memo sent by the branch to the home office amounting to ?80,000 was recorded by the home office twice.(d) A debit memo sent by the branch to the home office amounting to ?120,000 was recorded by the home office as ?12,000.(e) The branch sent by mistake a credit memo amounting to ?28,000 to the home office. The home office did not record it.
REQUIREMENT:
Problem 1: How much is the unadjusted balance of the "Home office" account?
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