Accounting for business combinationsHome office and branch entries

roblem: I January I, 2020, the D030 Company established its first branch in Cebu. Separate books are to be kept by the branch and financial :Itements are to be submitted to the home office at the end of each month. Merchandise is to be billed at cost. Depreciable assets are to b irried on the books of the home office. Both the home office and the branch books use the periodic inventory method. Transactions during nuary of the branch operations are as follows: January U.) U) N N N H H equired: repare the journal entries to record the transactions for both the 0030 home office and Cebu ranch accounts. Received cash of P550,000 from the home office. Purchased en ui . ment with a five ear life for P420,000. Received merchandise shi o ments from home office at the P80,000 home office cost. Purchased merchandise from outside su - - liers for P90,000 cash. Sold merchandise to Nallo Co. for P140,000 cash. Returned P6,000 of the merchandise ac uired from home ofce. Sold merchandise to Sumow Co. for P80,000 cash. Paid the following expenses: Salaries, P8,000,' Utilities, P6,000; Rent expense, P10,000; Miscellaneous expense, P2,000. Remitted P90,000 to the home office. Salaries payable at month-end amounted to P2,000 and depreciation of equipment for the month were recorded. Merchandise branch inventory at month-end consisted of P15,000 merchandise acquired from outside suppliers and P25,000 acquired from home office