Assume that you are the accountant of ABC Company. The companys home office is in New York and it has only one branch in Boston. During 2017 the following transactions and events occurred.

Part A

1. Home office transferred $100,000 cash, $500,000 inventory (billed at cost) and other assets costing $20,000 to Boston branch.
2. Boston branch transferred to home office $20,000 cash and $10,000 inventory (recorded at cost).
3. An equipment is purchased by the home office for the branchs usage for $80,000. Home office also pays $5000 for insurance for this asset which they allocated to branch. The home office keeps the accounting records for the equipment.

Instructions: Prepare journal entries for these transactions for both home office and branch.