Problem 1

Carrier Marketing operates a branch in Makati. On October 31, 2022, the Branch Current account had a balance of P300,000. In the process of reconciling the reciprocal current accounts, the items that follow were noted: a. The home office had billed the branch P75,000 for merchandise shipment still in transitas of October 31. b. A home office customer's account for P21,000 collected by the branch on October 26has not been reported to the home office. c. The branch has failed to recognize its P5,000 share of advertising expense paid for bythe home office. d. The branch reported a net income of P43,500 during the fiscal period then ended; thiswas erroneously taken up as P45,500 by the home office. Assuming that all other transactions related to the home office and its branch are correctly recorded, the adjusted balance of the reciprocal current accounts as of October 31, 2022 was:

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Problem 2

PUP Company opened its Cebu branch a year ago. At year end, the branch summarized operating data as follows: Sales, P364,000; Shipments from home office, P148,500; Purchases, P137,500; Expenses, P71500; Ending inventory, P82,500 (of which P16,500 from outsiders); beginning inventory, P60,000 (of which P45,000 came from home office). 1. The true net income of the branch: (assuming shipments by home office are made at 20% gross profit rate)

2. The realized loading assuming shipments by home office are made at 20% gross profit rate is:

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**** please show the computation/solution for the problems. it will be a big help if you answer this in 13-20 mins. thank you so much ****