AMNESTY PARDON Co. is currently preparing its combined financial statements. At December 31,

20x1, the home office shows a 624,000 balance in its "Investment in branch" account while the branch showed a 280,800 balance in its "Home office" account. The following information has been gathered:

(a) The home office shipped merchandise worth 80,000 to the branch during December 20x1 which the latter has received and recorded only in January 20x2.

(b) The home office collected 40,000 accounts receivable on behalf of the branch. The branch did not yet receive the credit memo sent by the home office.

(c) The branch returned damaged merchandise worth 120,000 to the home office. The home office did not yet receive the debit memo sent by the branch.

(d) A remittance of cash collections amounting to 160,000 was not yet recorded by the home office.

(e) The home office allocated overhead cost of 20,000 to the branch which the latter has recorded twice.

(f) Freight charge of 48,000 paid by the home office for shipments of merchandise to the branch was recorded by the latter as 4,800.

REQUIREMENT: How much is the adjusted balance of the "home office" account?

14. 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.

REQUIREMENT: How much is the net adjustment to the "Home office" account? increase (decrease)

15. 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:

(a) 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.

(b) Branch One acquired equipment for 160,000 to be maintained in its books. This was not recorded by the home office.

(c) Branch Four remitted cash collections of 40,000 to the home office which the latter failed to record.

(d) The home office erroneously charged Branch One for a debit memo of 48,000 received from Branch Five.

(e) 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.

REQUIREMENT: How much is adjusted balance of the "Home Office" account?

16. ASTATIC UNSTABLE Co. is currently preparing its combined financial statements. At December 31, 20x1, the home office shows a 728,000 balance in its "Investment in branch" account. The following information has been gathered during the reconciliation process:

(a) A credit memo sent by the home office to the branch amounting to 48,000 was not recorded by the branch.

(b) A debit memo sent by the home office to the branch amounting to 36,000 was not recorded by the branch.

(c) A credit memo sent by the branch to the home office amounting to 80,000 was recorded by the home office twice.

(d) A debit memo sent by the branch to the home office amounting to 120,000 was recorded by the home office as 12,000.

(e) The branch sent by mistake a credit memo amounting to 28,000 to the home office. The home office did not record it.

REQUIREMENT: How much is the unadjusted balance of the "Home office" account?