Exercise 13 and 14.

8:32 MM f accounting_for_bra... @ ant Ang Pampan Branches 4.12) 4.13) adjustment, the May 31, 2005, balance of the home office's Allowance for Overvaluation of Inventories: Portland Street Branch was $200,000 credit Prepare journal entries (omit explanations) on May 31, 2005, for the home office of Trapp Company to reflect the foregoing facts Tillman Textile Company has a single branch in Toledo. On March 1, 2005, the home of fice accounting records included an Allowance for Overvaluation of Inventories Toledo Branch ledger account with a credit balance of 532,000. During March, merchandise cost ing $36,000 was shipped to the Toledo Branch and billed at a price representing a 40% markup on the billed price. On March 31, 2005, the branch prepared an income statement indicating a net loss of $11.500 for March and ending inventories at billed prices of $25.000 a. Prepare a working paper to compute the home office cost of the branch inventories on March 1, 2005, assuming a uniform markup on all shipments to the branch Prepare a journal entry to adjust the Allowance for Overvaluation of Inventories Toledo Branch ledger account on March 31, 2005, in the accounting records of the home office The home office of Glendale Company, which uses the perpetual inventory system, bills shipments of merchandise to the Montrose Branch at a markup of 25% on the billed price. On August 31, 2005, the credit balance of the home office' Allowance for Over valuation of Inventories: Montrose Branch ledger account was $60,000. On Sep tember 17, 2005, the home office shipped merchandise to the branch at a billed price of $400,000. The branch reported an ending inventory, at billed price of $160,000 on Sep tember 30, 2005, Prepare journal entries involving the Allowance for Overvaluation of Inventories: Montrose Branch ledger account of the home office of Glendale Company on September 17 and 30, 2005. Show supporting computations in the explanations for the entries. On January 31, 2005, the unadjusted credit balance of the Allowance for Overvaluation of Inventories: Vermont Avenue Branch of the home office of Searl Company was 580,000 The branch reported a net income of $60,000 for January 2005 and an ending inventory on January 31, 2005, of $81.000, at billed prices that included a markup of 50% on home of fice cost Prepare journal entries (omit explanations) for the home office of Searl Company on January 31, 2005, for the foregoing facts. The home office of Gomez Company bills its only branch at a markup of 25% above home office cost for all merchandise shipped to that Perez Branch. Both the home office and the branch use the periodic inventory system. During 2005, the home office shipped merchan- dise to the branch at a billed price of $30,000. Perez Branch inventories for 2005 were as follows role 4.14) 4.15) RE poss Purchased from home office at biled price Purchased from outsiders 15.000 6.800 19.500 8 570 Prepare journal entries (including adjusting entry) for the home office of Gomez Com pany for 2005 to reflect the foregoing information 14.16) Samore, Inc., bills its only branch for merchandise shipments at a markup of 30% above home office cost. The branch sells the merchandise at a markup of 10% above billed price Beginning inventories Add: Shipment from home office (Apr. 16) Available for sale Less Ending inventories Cost of goods sold $180.000 540 000 5720.000 120.000 $600,000 $150.000 450.000 5000 000 100 000 3500.000 $ 30,000 90,000 $120,000 20.000 $100.000 From the foregoing information, reconstruct a three-column ledger cool Allowance for Overvaluation of inventories 32 Branch for the home office of Southern CN Company beginning with the March 31, 2005, balance 530.000 credit Exercise 4.11) On May 31, 2005, Portland Street Branch (the only beach of Trapp Company reported net income of $80.000 for May 2005, and a $240.000 ending Inventory led price of merchandise received from the home office at a 25% markup on billed price Prior to Part One A r ena Brander (Exercise 4.12) HECK FIGURE Debit for nahi ories, 146,000 (Exercise 4.13) adjustment, the May 31, 2005, balance of the home offices Allowance for Or i on of Icons Portland Street Branch was $200,000 credit Prepare journal entries fomit explanations) on May 31, 2005, for the home office of Trapp Company to reflect the foregoing facts Tillman Textile Company has a single beach in Toledo On March 1, 2005, the home of fice counting records included an Allowance for Overvaluation of Inventories: Toledo Brunch ledger account with a credit balance of 532.000. During March merchandises ing S36,000 wa shipped to the Toledo Branch and billed at a price representing a 40% markup on the billed price. On March 31, 2005, the branch prepared an income statement indicating a met loss of $11.500 for March and ending inventories at billed prices of $25,000 4. Prepare a working paper to compute the home the cost of the branch inventories on March 1, 2005, assuming a uniform markup on all shipments to the branch Prepare a journal entry to adjust the Allowance for Overvaluation of Inventories Toledo Branch ledger account on March 31, 2005, in the accounting records of the home office The home office of Glendale Company, which uses the perpetual inventory system, bills shipments of merchandise to the Montrose Branch at a markup of 25% on the billed price. On August 31, 2005, the credit balance of the home office Allowance for Over valuation of Inventories: Montrose Branch ledger account was $60.000. On Sep tember 17, 2005, the home office shipped merchandise to the branch at a billed price of $400,000. The branch reported an ending inventory, at billed price of $160.000 on Sep tember 30, 2005 Prepare journal entries involving the Allowance for Overvaluation of Inventories Montrose Brunch ledger account of the home office of Glendale Company on September 17 and 30, 2005. Show supporting computations in the explanations for the entries On Jury 31, 2005, the adjusted credit balance of the Allowance for Overvation of Inventores Vermont Avenue Branch of the home office of Searl Company was $80,000 The branch reported a net income of $60,000 for January 2005 and an ending inventory January 31, 2005, of $81.000 billed prices that included a map of s on home of fice cost Prepare journal entries (mit explanations for the home office of Searl Company January 31, 2005, for the foregoing facts The home office of Gomez Company bills itsely bachata markup of 25% above home ice cost for all merchandise shipped to the Pere Brunch Bo the home office and the brunch the periodivery s em. During 2005, the home office shipped mercha dise to the branch a billed price of $30,000. Perez Brunch inventories for 2005 were follows HECK FIGURE credit droit 20.000 (Exercise 4.14) (Exercise 4.15) HECK FIGURE 5.100 Purchased from home office Purchased from outsiders biled price an. 1 15.000 6 800 Dec 1 19.500 8,670 Prepare journal entries (including adjusting entry for the home office of Gomes Com pany for 2005 to reflect the foregoing information (Exercise 4.16) Samore, Inc., bills its only branch for merchandise shipments at a markup of 30% above home office cost. The branches the merchandise ata markup of 10% above billed price