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A debit to the Income Summary ledger account and a credit to the Home Office account appear in: The accounting records of the home office
- A debit to the Income Summary ledger account and a credit to the Home Office account appear in:
- The accounting records of the home office to record the net income of the home office
- The accounting records of the home office to record the net income of the branch
- The accounting records of the branch to record the net income of the branch
- Some other manner
- The following journal entry (explanation omitted) appeared in the accounting records of Marty Corporation's only branch:
Operating Expenses 100,000
Home Office 100,000
The journal entry indicates that:
- The branch incurred operating expenses for the benefit of the home office
- The home office incurred operating expenses for the benefit of the branch
- The branch paid the home office for services rendered to the branch
- None of the foregoing occurred
- The Allowance for Overvaluation of Inventories: Branch ledger account of the home office is debited:
- When the home office ships merchandise to the branch at a billed price that exceeds cost
- In a journal entry to close the account at the end of an accounting period
- When the branch's ending inventory is recorded in the home office accounting records
- In some other circumstances
- The Income: Branch ledger account is maintained in the accounting records of:
- The home office only
- The branch only
- Both the home office and the branch
- Some other manner
- The Home Office ledger account in the accounting records of a branch is best described as:
- A revenue account
- An equity account
- A deferred revenue account
- A liability account
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