In hopes of increasing sales volume, Alexis Company opened a branch outlet several years ago in the city of Davao. Merchandise is shipped to this store periodically and recorded at a transfer price that includes a 40% mark-up over cost. At the end of 20xx, Alexis assigns the following corporate expenses to this branch. Although the main office has properly recorded these allocations, no entry has yet been made by the branch. Expense Advertising Rent Miscellaneous Debits Cash The following trial balances are for the main office and the Davao branch as of Dec 31, 20xx. One P 14,000 inventory shipment has not been received or recorded by Davao. Required: a. Prepare a worksheet to combine the records of these two operations so that a single set of financial statements can be prepared for Alexis Company. b. Prepare adjusting journal entries and working paper elimination entries. Accounts receivable Inventory, 12/31 Investment in branch Land, bldg, and equipment Shipment from office Purchases Depreciation expense Advertising expense Rent expense Miscellaneous expense Inventory, 1/1 Total debits Credits Accumulated depreciation Accounts payable Notes payable Home office Common stock Retained earnings, 1/1 Sales Allocation to Branch Shipment to branch Inventory, 12/31 Total Credits Alexis 25,000 108,000 209,000 207,000 340,000 348,000 25,000 36,000 12,000 40,000 175,000 1,525,000 80,000 37,000 220,000 P 9,000 6,000 2,000 100,000 240,000 529,000 110,000 209,000 1,525,000 Davao 18,000 25,000 42,000 112,000 96,000 8,000 15,000 5,000 20,000 35,000 376,000 16,000 15,000 176,000 127,000 42,000 376,000