ABASE HUMILIATE Co. is currently preparing its combined financial statements for the year ended December 31, 20x1. As of this date, the "Investment in branch" account has a balance of 380,000 while the "Home office" account has a balance of 528,000. The following information has been gathered:

a.The home office allocated unpaid utilities expenses amounting to 40,000 to the branch which the branch did not record in full. Instead, the branch sent a wrong adjusting memo to the home office reducing the charge by 10,000 and setting up a liability for the remaining amount.

b.The home office erroneously credited the branch for a return of shipment of merchandise worth 100,000. The branch did not make any return of merchandise.

c.The branch mistakenly received a copy of the home office correcting entry for item (b) above dated January 3, 20x2 and entered a credit in favor of the home office on December 31, 20x1.

d.The branch mistakenly sent the home office a debit memo amounting to 12,000 for an apparent remittance of collections which did not happen. The home office did not record the debit memo.

REQUIRED: DETERMINE THE INCREASE/DECREASE ON HOME OFFICE ACCOUNT.

ABOMINABLE VERY BAD Co. has several branches. On December 31, 20x1, the "Investment in Branch One" maintained by the home office shows a balance of 400,000 while the "Home office" account maintained by Branch One shows a balance of 568,000. The following information was determined:

1. Branch Two acquired equipment for 120,000 to be maintained in the books of the home office. This was recorded by the home office as a transaction with Branch One.
2. Branch One acquired equipment for 160,000 to be maintained in its books. This was not recorded by the home office.
3. Branch Four remitted cash collections of 40,000 to the home office which the latter failed to record.
4. The home office erroneously charged Branch One for a debit memo of 48,000 received from Branch Five.
5. Branch One reversed a previous debit memo from Branch Six amounting to 24,000. The home office decided that this charge is appropriately Branch Seven's cost.

REQUIRED:DETERMINE THE ADJUSTED BALANCE OF BOTH BOOKS.