2. Physical inventories at December 31, 2007, were as follows: Home office $70,000 at cost Branch A 21,000 at billed prices Branch B 15,000 at billed prices (does not include merchandise in ransit) REQUIRED - Prepare working papers to combine home office and branch accounts for the year ended December 31. 2007, 2. Prepare a reconciliation of the branch and home office accounts, starting with the balances given in the unadjusted trial balances and reconciling to the correct balances al December 31, 20107, after all adjusting and closing entries have been made. W 10-34 Year-end entries and combined income statement and balance sheet Trial balances for Homer Corporation and its two branches of December 31, 2006, are as follows: Homer Hampton Norfolk Home Office Branch Branch Debits Cash $ 18.000 $ 15.000 Receivables 30.000 26000 Inventories January 1 36.000 Other mascis 200.000 12,800 47.800 Hampton branch 50 000 Norfolk branch 68,000 Shipments from home office 301000 27.000 Purchases 120.000 Expenses 78 000 35.001 $16100 Credit Accounts payable 5 40 000 $ 10 000 $ 30.000 Capital slock 200,000 Relained earnings 41.900 Home office 42000 61,000 Sale 250,000 701000 Shipments to Hampton branch 36,000 Shipments to Norfolk branch 31 000 Loading-branch inventories 2.100 132 000 $161 020 ADDITIONALINFORMATION 1. All shipments are billed at 120% of cost. 2. Ending inventories are $32,000, $8.400, and $4,800 for the home office, the Hampton branch, and the Norfolk branch, respectively. Finding inventories of the branches include the standard 20% loading factor but exclude goods in transit 3. Goods in transit al billing prices on December 31, 2006, are $6,000 to the Hampton branch and $3,000 to the Norfolk branch. Cash in transit from home office to the Hampton branch for operating expenses at December 31, 2006, is $2,000. Cash in transit from the Norfolk branch to home office amounts to $4,000. 4 "Landing branch inventories" represents unrealized profit in beginning inventories of the Hampton and Norfolk branches. REQUIRED 1. Prepare all journal entries necessary to adjust and close the books of the Hampton branch. 2. Prepare all journal entries necessary to adjust and close the books of the Norfolk branch. 3. Prepare all journal entries necessary to adjust and close the books of the home office. A Prepare an income statement for 200% and a balance sheet on December 31, 200%, for Homer Corporation in a form that reports revenue and expense details rather than branch profit and loss