Exercise 4.4

cercise 4.4) Among the journal entries of the home office of Watt Corporation for the month of January 2005, were the following: 100,000 2005 Jan. 2 Investment in Wilshire Branch Inventories Allowance for Overvaluation of inventories: Wilshire Branch To record merchandise shipped to branch. 80,000 20,000 18 5,000 Equipment: Wilshire Branch Investment in Wilshire Branch To record acquisition of equipment by branch for cash. 5,000 8,000 31 Investment in Wilshire Branch Operating Expenses To record allocation of operating expenses to branch. Prepare related journal entries for the Whilshire Branch of Watt Corporation: the branch uses the perpetual inventory system. 100,000 2005 Jan. 2 Investment in Wilshire Branch Inventories Allowance for Overvaluation of Inventories: Wilshire Branch To record merchandise shipped to branch. 80,000 20,000 5,000 18 Equipment: Wilshire Branch Investment in Wilshire Branch To record acquisition of equipment by branch for cash. 5,000 8,000 31 Investment in Wilshire Branch Operating Expenses To record allocation of operating expenses to branch. 8,000 Prepare related journal entries for the Whilshire Branch of Watt Corporation: the branch uses the perpetual inventory system