Reference no: EM132902207

Carmela Appliance Company operates a branch in Quezon City. The following are transactions between the home office and branch for the current year.

a. The home office sends P200,000 cash to the branch.

b. Shipments to branch are billed at cost of P78,750.

c. The Home Office pays branch expense of P3,500.

d. Home office expense of 3,375 are paid by the branch.

e. The branch returned merchandise costing P10,000 to the home office.

f. Home office acquires branch furniture for P20,500 cash. The said fixed asset is carried on Branch Books.

g. The annual depreciation on the branch furniture is 5%.

h. The branch sends a P15,000 cash remittance to home office.

Problem 1: What is the adjusted balance of Branch Current account in the Home Office Books?

Problem 2: What is the adjusted Home Office Current account in the Home Office Books?