Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Honest Co. On December 31, 2022, the Home Office Current account in the general ledger of the branch office of Honest Co. shows a debit
Honest Co. On December 31, 2022, the Home Office Current account in the general ledger of the branch office of Honest Co. shows a debit balance of P40,000. You ascertain the following facts in analyzing this account. a. On December 31, 2022, merchandise billed at P5,800 was in transit from the home office to the branch b. The branch collected home office accounts receivable of P500; the home office not notified. c. On December 31, 2022, the home office mailed a check for P2,000 to the branch but the accountant of the home office recorded the check as a debit to general expense account. The branch had not received the check as of December 31. d. Branch net income for December was recorded erroneously by the home office at P8,400 instead of P4,800. e. Home office credit memo representing a discount on merchandise for P1,300 was not recorded by the branch. What is the unadjusted balance of the Branch Current account on the books of the home office? Your answer What is the adjusted balance of the Home Office Current account on the books of the branch? Your answer What is the adjusting entry of the home office for item c? Your
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started