Reference no: EM132675760

Question - Assume that XYZ company opened branches at bure town as of Bure branch. The Transactions and events during the first year (2010) of operations of Bure Branch are summarized below (start-up costs are disregarded):

1. Cash of Br 1,000 was forwarded by the Home Office to AGARO Branch.

2. Merchandise with a Home Office cost of Br 60,000 was shipped by the Home Office to AGARO Branch.

3. Equipment was acquired by AGARO Branch for Br 500, to be carried in the Home Office accounting records. (Other plant assets for AGARO Branch generally are acquired by the Home Office.)

4. Credit sales by AGARO Branch amounted to Br 80,000; the branch's cost of the merchandise sold was Br 45,000.

5. Collections of trade accounts receivable by AGARO Branch amounted to Br 62,000.

6. Payments for operating expenses by AGARO Branch totaled Br 20,000.

7. Cash of Br 37,500 was remitted by AGARO Branch to the Home Office.

8. Operating expenses incurred by the Home Office and charged to AGARO Branch totaled Br 3,000.

Instructions -

A. Record the transactions on the book of XYZ Company.

B. Record the transactions on the book of Bure branch.