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Sorella Company operates a branch in Davao City. The following are the transactions between the home office and branch for the current year.
A. The home office sends P400,000 cash to the branch.B. Shipments to branch are billed at cost of P157,500.C. The Home Office pays branch expense of P7,000.D. Home office expense of P6,750 are paid by the branch.E. The branch returned merchandise costing P20,000 to the home office.F. Home office acquires branch furniture for P41,000 cash. The said fixed asset is carried on Branch Books.G. The annual depreciation on the branch furniture is 10%.H. The branch sends a P30,000 cash remittance to home office.
Problem 1: What are the journal entry?
Problem 2: What is the adjusted balance of Branch Current account in the Home Office Books?
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