Reference no: EM132643053
The following were found in your examination of the interplant accounts between the Home Office and the Cebu Branch:
a. Transfer of fixed assets from Home Office amounting to P53,960 was not booked by the branch.
b. P10,000 covering marketing expense of another branch was charged by Home Office to Cebu Branch.
c. Cebu recorded a debit note on inventory transfers from Home Office of P75,000 twice.
d. Home Office recorded cash transfer of P65,700 from Cebu Branch as coming from Davao Branch.
e. Cebu reversed a previous debit memo from Cagayan de Oro Branch amounting to P10,500. Home office decided that this charge is appropriately Davao Branch's cost.
f. Cebu recorded a debit memo from Home Office of P4,650 as P4,560.
Problem 1: The net adjustment in Cebu's books related to Home Office account is
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