Included in the accounting records of the home office and Oda Branch, respectively, of Geda Company were the following ledger accounts for the month of July 2008:

Investment in oda branch(in home office accounting records

date

Explanation

Debt

credit

balance

2008

July1

balance

59,000.00

9

Shipment of merchandise

5,000.00

64,000.00

21

Receipt of cash

2,600.00

61,400.00

27

Collection of branch trade accounts receivable

2,100.00

59,300.00

31

Shipment of merchandise

7,000.00

66,300.00

31

Payment of branch trade account payable

3,000.00

69,300.00

Home office( in oda branch accounting records)

date

Explanation

Debt

credit

balance

2008

July 1

Balance

59,000.00

10

Receipt of merchandise

5,000.00

64,000.00

19

Remittance of cash

2,600.00

61,400.00

28

Acquisition of furniture

2,200.00

59,200.00

30

Return of merchandise

3,200.00

56,300.00

31

Remittance of cash

3,500.00

52,500.00

Instructions:

A. Prepare working paper to reconcile the reciprocal ledger accounts of Geda Company's home office and Oda Branch to the corrected balance on July 31, 2008. B B. Prepare journal entries on July 31, 2008, for the (1) home office and (2) Oda Branch of Geda Company to bring the accounting records up to date. Both the home office and the branch use the perpetual inventory system.