Among the journal entries of the home office of Watt Corporation for the month of January 2005, were the following:

Prepare related journal entries for the Whilshire Branch of Watt Corporation: the branch uses the perpetual inventory system.

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2005 Jan. 2 Investment in Wilshire Branch Inventories Allowance for Overvaluation of Inventories: Wilshire Branch To record merchandise shipped to branch. 100,000 80,000 20,000 18 Equipment: Wilshire Branch Investment in Wilshire Branch 5,000 5,000 To record acquisition of equipment by branch for cash. 31 Investment in Wilshire Branch 8,000 Operating Expenses 8,000 To record allocation of operating expenses to branch.