Reference no: EM133043240

Question - On December 31, 2012 the home office capital account on the branch's books has $44,000 balance and the investment in branch account on the home office's books has an $85,000 balance. In analyzing the activity in each of these accounts for December you find the following differences:

A. A $10,000 branch remittance to the home office initiated on December 27, 2012 was recorded on the home office books on January 1, 2013.

B. A home office inventory shipments the branch on December 28, 2012 was recorded by the branch on January 4, 2013: the $20,000 billing was at cost.

C. The home office incurred $12,000 of advertizing expense and allocated $5,000 of this amount to the branch on December 23, 2012. The branch has not recorded this transaction.

D. A branch customer erroneously remitted $3,000 to the home office. The home office recorded this cash collection on December 23, 2012. Meanwhile the branch has made no entry yet. E. Inventory costing $43,000 was sent to the branch by the home office on December 10, 2012. The billing was at cost but the branch recorded the transaction at $34,000.

Required - Make the entries to bring the intercompany accounts into balance as of December 31, 2012. Assume that a perpetual inventory system in use.