• On December 31, the branch account on the home office books of the Camry Co. shows a balance of P8,400 and the home office account on the branch books shows a balance of P9,735. The following data are determined in accounting for the difference:

  a. Merchandise billed at P615 was shipped by the home office to the branch on December 28. The merchandise is in transit and has not been recognized on the books of the branch.

  b. The branch collected a home account receivable of P2,500, but failed to notify the home office of this collection.

  c. The home office recorded a net income for November at P1,125. The branch reported a net income of P1,215.

  d. The home office was charged P640 when the branch returned merchandise to the home office on December 31. The merchandise is in transit. Instructions:

  1. Prepare a statement reconciling the branch and the home office account. 2. What entries would be made on the branch and the home office books before financial statements are prepared?