Petram Company which is involved in a merchandise business has established a branch at Diredawa with the name -Diredawa Branch. The branch handles sales functions, maintains merchandise inventories, make credit sales and cash collections. It maintains complete charts of accounts to handle its financial transactions. But, it is a policy of the Petram Company to maintain record of all of its Property plant & Equipment at home office book only. The Home Office bills shipment of Merchandise to Dire Dawa Branch at cost plus 25% markup. Both the home office and Diredawa Branch use perpetual inventory system. During the first year of its operation in 2012, the following financial transactions have occurred. 

Jan1. Petram Co has purchased and delivered furniture with cost of Br 150,000 to Diredawa Branch 

Feb10. Merchandise Inventory with billed price of Br500,000 has been shipped to Diredawa branch from Petra Co. 

Feb 15. Diredawa Branch has made credit sales of 190,000 to its customers. The cost of this inventory is Br.150, 000 at billed price of home office. 

Feb28. Cash collection of Br.170, 000 is made by the branch from the credit sales it has made on Feb 15. On the same date the branch has transferred the cash collection of Br. 150,000 to home office. 

June 30. Petram Co. has made credit sales of Br. 300,000. The cost of these inventories is Br.200, 000. 

Dec.25. DireDawa Branch has incurred operating expenses of Br. 20,000. The expense incurred does not include balance allocated by home office. 

Dec31. The home office has incurred operating expenses of Br. 50,000 out of which Br. 10,000 is the share of Diredawa branch and is allocated to Diredawa branch. The home office has communicated Diredawa branch of the operating expense allocation for necessary entries. 

Instruction: 

Prepare journal entries for both home office and Diredawa Branch including yearend closing entries.