Pasig Garment Company operates a branch in Cabanatuan City At the end of the year, the Branch account in the books of the home office at Manila shows a balance of P150,000. The following information are ascertained: The home office has billed the branch the amount of P37.800 for the merchandise, which was in transit on December 31. A home office accounts receivable for P10.500 was collected by the branch, Said collection was not reported to the home office by the branch. Supplies of P4500 was returned by the branch to the home office but the home office has not yet reflected in its records the receipt of the supplies. The branch made profit of P10,100 for the month of December but the home office erroneously recorded it as P11,180. The branch has not received the cash in the amount of P25,000 sent by home office on December 31. This was charged to General Expense account. All transactions are presumed to have been property recorded. 1, What is the balance of the Home Office account on the books of the branch as of December 31, before adjustments? P121,920 P117.420 P123,000 P106.920 What is the adjusted balance of the reciprocal accounts? P 96,420 C. Pi17 420 P106,920 P179.920 Ryder Corporation has one branch operation located 500 miles away from the home office. The branch office sells merchandise which is shipped to it from the home office. The merchandise is transferred at cost but the branch pays reasonable freight charges. The branch office makes sales and incurs and pays operating expenses. At the end of the current accounting period the true adjusted balance for the home office account on the branch's books and the branch office account on the home office's books is P500,000. The following items may or may not be reconciling items. The current year is 20x4. The home office has shipped merchandise to the branch office which cost P10,000 and which incurs P500 freight charges paid by the home office but charged to the branch. This merchandise is received by the branch on January 5, 20x5. The branch has transmitted P17,000 in cash back to the home office as a partial payment on such purchased merchandise. This cash is received by the home office on January 6, 20x5. The branch office returns some defective merchandise to the home office. The cost of the returned merchandise is P/50, The branch office pays P25 of freight costs which will be charged back to the home office. On December 1, 20:4, the home office sends a check for P25,000 to replenish the branch's working capital. The check is received on January 4 20x5. The branch pays an advertising expense of P800 that should have been paid by the home office since it applied to advertising fees incurred by the home office for its own benefit. The home office allocated P12.000 of general and administrative expenses to the branch, The branch had not entered the allocation as of the end of the year. The home office pays insurance premiums on the branch store. The amount paid by the home office is P1,000 but the branch erroneously records it as P776.00 Compute the unadjusted balances for the branch and home office accounts as of December 31, 20x4. Home Office Current Branch Current A. P481,425 P403,701 P500,000 P500,000 Ang P452,276 P518,575 P518,575 P452 276 Hope Company operates a main store at its home office and a branch store in another city. The branch purchases most of its merchandise from the home office at 10's above home office cost. All merchandise acquired from other suppliers is accounted for by the branch at original cost. At September 30, 20x8, the records of the branch indicated the following: September Sales. P140,000 Inventory, September 1. 35,200* (50% from outside suppliers) Shipments from home office 55,000 (at billed price) Purchases from outsiders 24 000 Selling expenses 8,000 General expenses 32 000 Inventory, September 30. 30,000 (PB,000 from outside suppliers) Merchandise sequined from the home office h lime movied at biled pucci Required 1. Give the journal entries on the home office and branch books to record the shipments. 2 Prepare the incore statement for the branch Prepare all necessary entries on the home office books at September 30, 20x8 to adjust the home office records for the branch operations for September