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. AP 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.