COMPLETE SOLUTION..

Questions 8 and 9 are based on the following information. Yul Trading Corp. operates a branch in Talisay City. At the close of business on December 31,2012 , Talisay Branch account in the home office books showed a debit balance of P225,770. The interoffice accounts were in agreement at the beginning of the year. For purposes of reconciling the interoffice accounts, the following facts were ascertained: 1. An office equipment costing the home office P3,5000 was picked up by the branch as P350. 2. Insurance premium of P675 charged by the home office was taken up twice by the branch. 3. Freight charges on merchandise made by the home office for P1,125 were recorded in the branch book as P1,215. 4. Home office credit memo representing a discount on merchandise for P800 was not recorded by the branch. 5. The branch failed to take up a P700 debt memo from the home office representing the share of the branch in the advertising. 6. The home office inadvertently recorded a remittance for P3,000 from the Cebu branch as a remittance from its Talisay branch. 8. What is the balance of the Home Office account before adjustment as of December 31,2012 ? a. P225,000 c. P228,485 b. 225,770 d. 226,485 9. What is the adjusted balance of the Home Office account as of December 31,2012 ? a. P225,000 c. P225,770 b. 226,485 d. 228,770