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Question - On January 1, 2022, first year of operations, Manila Company opened a branch in Bacolod and the following transactions were ascertained from the year: Manila Co. sent P150,000 worth of merchandise to its Bacolod branch. Manila Co. purchased merchandise from vendors worth P280,000. Sales for Manila Co. and Bacolod were P350,000 and P175,000, respectively. Bacolod remitted P35,000 cash to its home office. Manila Co. incurred, but not yet paid P60,000 worth of expenses of which 30% was allocated to the branch during the year. Ending inventory for Bacolod Co. and Manila Co. were P15,500 and P23,500, respectively.
Required -
1. What is the balance of the Branch Current Bacolod for the year ended December 31, 2022? (Assuming reciprocal accounts have not yet been eliminated).
2. What is the cost of goods sold reported by Manila Co. for the year ended December 31, 2022?
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