Question
Please, to have my vote, show your calculation - The following ledger account was in the accounting records of the Habiba Branch of ABC Company
Please, to have my vote, show your calculation
- The following ledger account was in the accounting records of the Habiba Branch of ABC Company on December 31, 2019:
Home Office | ||||
Date | Explanation | Debit | Credit | Balance |
2019 |
|
|
|
|
Jan. 1 | Balance |
|
| 40,000 cr |
Mar. 10 | Cash remitted to home office | 10,000 |
| 30,000 cr |
31 | Merchandise returned to home office | 2,650 |
| 27,350 cr |
June 6 | Merchandise received from home office |
| 14,400 | 41,750 cr |
Oct. 10 | Cash received from home office |
| 2,600 | 44,350 cr |
Dec. 20 | Acquisition of fixtures | 9,250 |
| 35,100 cr |
31 | Net income |
| 7,770 | 42,870 cr |
The home office of ABC Company used the perpetual inventory system, and billed the branch for merchandise shipments at 20% above home office cost.
Required:
Prepare journal entries to record the above indicated transactions and events in the accounting records of the home office of ABC Company.
C- The following ledger account was in the accounting records of the Habiba Branch of ABC Company on December 31, 2019: Home Office Date Explanation Debit Credit Balance 2019 Jan. 1 Balance 40,000 SE Mar. 10 Cash remitted to home office 10,000 30,000 SE 31 Merchandise returned to home office 2,650 27,350 cr June 6 Merchandise received from home office 14,400 41,750 cc Oct. 10 Cash received from home office 2,600 44,350 cc Dec. 20 Acquisition of fixtures 9,250 35,100 ST 31 Net income 7,770 42,870 ST The home office of ABC Company used the perpetual inventory system, and billed the branch for merchandise shipments at 20% above home office cost. | Required: Prepare journal entries to record the above indicated transactions and events in the accounting records of the home office of ABC Company. (9 Marks)Step by Step Solution
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