During the first part of the current year, Luzon Inc. begins a branch operation in Iloilo City. Equipment costing P 50,000is immediately sent to this site. In addition, inventory costing P 40,000 is transferred but at a price of P 60,000. Cash of P 10,000 also is conveyed to the branch. The following events occur thereafter: The branch inventory from an outside party at a cost of P 30,000. A periodic inventory system is in use. The home office pays P 10,000 on a building for the next eight months. The branch is notified of this payment. Sales of P 90,000 are made. Cash of P 40,000 is collected immediately. The rest of the sales are made on account. The branch pays P 8,000 for advertising and another P 5,000 for salaries. The branch transfers P 10,000 in cash to the home office. The money is received and recorded. A P 3,000 receivable is collected by the home office for the branch. The branch is notified of this collection. The building rented by the branch is occupied for four months. Required: a. Prepare Journal entries for the Branch and Home Office books. b. Prepare the Income statement of Iloilo branch.