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Lion Corporation operates a number of branches throughout the country. On December 31, 2016, the head office in Makati reported an adjusted balance of P2,

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Lion Corporation operates a number of branches throughout the country. On December 31, 2016, the head office in Makati reported an adjusted balance of P2, 000, 000 in its Investment in Cebu branch account . Below are the transactions affecting the intercompany accounts for the year 2017: a. Branch remittance of P534,000. Of the amount, Pl14, 000 was still in transit as of December 31, 2017. Shipments to branch (includes goods worth P132, 000 that are not yet received by the branch as of December 31, 2017) are P1, 410,000. C. The home office has not yet informed the branch of its share in the advertising expense amounting to P45,000. d. Accounts receivable of the branch amounting to P90, 000 was collected by home office, net of 48 discount. The branch has not been notified. The home office incorrectly credited the branch by P30, 000 for the remittance of its CDO branch. The Cebu branch made no entry. E The home office corrected the above entry on January 5, 2018. However the Cebu branch inadvertently received a copy of this memo and entered a credit in favor of the home office as of December 31, 2017. g . The branch returned merchandise worth $37,500 to the home office and was duly acknowledged by the latter during the year. h . A P36, 000 shipment charged by home office to Cebu branch was actually sent to and retained by Davao branch. i . A P45, 000 shipment, intended and charged to Bacolod branch was shipped to Cebu branch and retained by the latter. j . A P6, 000 emergency cash transfer from Davao branch to Cebu branch was not taken up in the home office books. On December 30, 2017, the home office mailed a check of P30, 000 to Cebu branch but the bookkeeper charged the check to General Expenses; the branch has not received the check as of December 31, 2017. 1 . During the year 2017, Mr. Ri, a newly hired accountant in Cebu branch erroneously charged for P25, 500 the home office account in recording payments to supplier. This was his first and only mistake made during his first year of service to the company

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