What is unadjusted balance of investment in serendra branch

Assignment Help Financial Accounting

Reference no: EM132651809

Prestige Buy Company has established a branch in Serendra by sending goods costing P46,225 and P20,000 cash on July 1, 2018. Home office initiated transactions for the remainder of the year are found below. At the end of the year, the company's controller has found out that the accounting staff assigned in the recording the transactions between the home office and the branches had failed to record all the transactions initiated by the branch. Because of this, there is a significant discrepancy between the balances of the reciprocal accounts.

Prestige Buy Company acquired a money counter and vault amounting to P105,000 for the Serendra branch on August 1,2018. As per agreement, the branch will keep all the property, plant and equipment records.
Goods costing P80,000 were shipped from Prestige Buy Company to Serendra branch on November 9, 2018.
Additional cash amounting to P13,500 was transferred to the Serendra branch on December 2, 2018.
Illustrado Trading, a Serendra branch customer has incorrectly paid P6,250 cash to the home office on December 16,2018.
Prestige Buy Company incurred P16,250 of advertising cost and P24,000 of salaries. Serendra branch is to shoulder 30% and 20% of these expenses, respectively.

For the purpose of reconciling the reciprocal accounts, the controller has instructed the Serendra branch accountant to send a copy of the Home Office Current general ledger to the home office.

Home Office Current
8/3	Supplies and equipment acquisition	P105,00 0	7/1	Goods from Home Office	P46,225
11/5	Cash remittance	19,500	7/1	Cash	20,000
12/20	Return of goods to HO	12,250	8/15	Collections of HO's AR	28,400
			11/10	Goods from Home Office	57,500
			12/4	Cash	12,575

				Balance	P27,950

Required:

Question 1: What is Unadjusted balance of Investment in Serendra branch account?

Reference no: EM132651809

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