Reference no: EM132948726

Question - Maranao Trading of Iligan City opens a branch in Taguig City. The following are the transactions during The branch first year of operations:

a. The home office sends checks to the branch in the amount of P10,000 as working fund.

b. The home office bought furniture and fixture in the amount of P9,000 for use by the branch. Records of fixed assets are kept by the branch.

c. The home office ships merchandise to the branch at cost of P40,000.

d. The branch sold on account merchandise in the amount of P52,000.

e. The branch collected accounts receivable in the amount of P38,000 net of the P600 discount.

f. Branch expenses for the period amounted to P7,000 including the depreciation of P1,800.

The branch ending inventory is P6,000.

Required -

A. Journal entries to record the transactions on the books of both the home office and the branch.

B. Adjusting and closing entries in the books of both home office and the branch.