ABC operates a branch in Legazpi City At close of the business on December 31, 2022 Legazpi Branch account in the home office books showed a debit balance of P234,900 The inter office accounts were in agreement at the beginning of the year For purposes of reconciling the interoffice accounts, the following facts were ascertained Computer equipment costing the home office P27,000 was sent to Legazpi branch The home office will maintain the records of the asset used by the branch Meanwhile back at the branch, no entry was made The branch acquired a machinery costing P18,000 The home office will maintain the records of the asset used by the branch The home office was not yet notified The home office charged the branch for freight amount to P2,220 It should have been charged to its customer The home office inadvertently recorded a Legazpi branch remittance of P4,200, as collection from its customers on account On December 24, 2022, the branch sent a check for P9,600 to its suppliers on account The branch erroneously recorded the transaction as a remittance to the home office and sent a copy of the debit memo to the home office The home office recorded this upon receiving the debit memo on December 29, 2022 On December 26, 2022 the branch returned P6,600 of excess merchandise to the home office The merchandise was received by the home office on December 30, 2022 and credited Lanao Branch Current The home office allocated advertising and rent expense totaling P5,400 to Legazpi branch The home office charged the said expense to Laguna branch by mistake, Legazpi branch had not entered the allocated at year end A home office customer remitted P3,600 to the branch The branch inadvertently recorded this transaction on December 28, 2022 as a transfer of cash from the home office The home office made no entry during the year Inventory costing P36,000 was sent to the branch by the home office on December 14, 2022 The branch recorded the transaction as a purchase of merchandise on account from outsiders by mistake How much is the unadjusted balance of the home office current account as of December 31, 2022

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 10, 2024

ABC operates a branch in Legazpi City. At close of the business on December 31, 2022.Legazpi Branch account in the home office books showed a

ABC operates a branch in Legazpi City. At close of the business on December 31, 2022.Legazpi Branch account in the home office books showed a debit balance of P234,900. The inter-office accounts were in agreement at the beginning of the year. For purposes of reconciling the interoffice accounts, the following facts were ascertained.

Computer equipment costing the home office P27,000 was sent to Legazpi branch. The home office will maintain the records of the asset used by the branch. Meanwhile back at the branch, no entry was made.
The branch acquired a machinery costing P18,000. The home office will maintain the records of the asset used by the branch. The home office was not yet notified.
The home office charged the branch for freight amount to P2,220. It should have been charged to its customer.
The home office inadvertently recorded a Legazpi branch remittance of P4,200, as collection from its customers on account.
On December 24, 2022, the branch sent a check for P9,600 to its suppliers on account. The branch erroneously recorded the transaction as a remittance to the home office and sent a copy of the debit memo to the home office. The home office recorded this upon receiving the debit memo on December 29, 2022.
On December 26, 2022 the branch returned P6,600 of excess merchandise to the home office. The merchandise was received by the home office on December 30, 2022 and credited Lanao Branch Current.
The home office allocated advertising and rent expense totaling P5,400 to Legazpi branch. The home office charged the said expense to Laguna branch by mistake, Legazpi branch had not entered the allocated at year-end.
A home office customer remitted P3,600 to the branch. The branch inadvertently recorded this transaction on December 28, 2022 as a transfer of cash from the home office. The home office made no entry during the year.
Inventory costing P36,000 was sent to the branch by the home office on December 14, 2022. The branch recorded the transaction as a purchase of merchandise on account from outsiders by mistake.

How much is the unadjusted balance of the home office current account as of December 31, 2022?