Problem 11. Fire Company has a branch in Baguio and Davao. The reciprocal accounts between the home office and the branches were in agreement at the beginning of 2013. However, at December 31, 2013, the following reciprocal balances are found in the home office books:

Investment in Baguio P186,500

Investment in Davao 84,000

Data for reconciliation of the reciprocal accounts are as follows:

? On December 29, 2013, the home office has instructed Baguio to transfer P74,000 cash to Davao. Baguio recorded this transaction immediately. Upon receipt, Davao recorded this transfer at P47,000. The home office however has not yet recorded this inter-branch transaction as of the end of the year.

? Fire has transferred goods costing P28,900 to Baguio branch and paid P2,500 of shipping cost on December 16, 2013. Baguio shipped all these goods to Davao upon instruction of the home office on December 30, 2013. Shipping cost is P3,600 freight collect. Had the goods were shipped directly to Davao, P5,000 of freight cost should have been incurred. The inter-branch shipment was not recorded by the branches and the home office as well.

? Baguio has collected cash of P5,750 from Davao's customers. This transaction is not yet recorded by Davao and the home office.

? The home office has already allocated P11,000 and P9,000 of administrative expenses to Baguio and Davao, respectively. The branches are not yet notified.

? Baguio remitted P14,300 cash to the home office on December 12, 2013. The home office has failed to record the said remittance.

? Davao returned goods costing P6,850 to the home office. The goods were shipped on December 19 and received on December 24 but no entries have been made in the home office books.

Compute the following:

1. Adjusted balance of Investment in Baguio account. _____________________

2. Adjusted balance of Investment in Davao account. _____________________

3. Unadjusted balance of Home Office Current account in Baguio's books. _____________________

4. Unadjusted balance of Home Office Current account in Davao's books. __

please show solutions in good form

part 2

Problem 3. Journalize the following District 2 Agency transactions: (Assume Perpetual Inventory method) Agency Transactions Home office books a. January 1 Receipt of P1,000 revolving fund from home office. b. January 1 - 31 Orders sent by agency to home office and approved by the home office amounting to P200. (mark-up on cost is 66 2/3 %) Cours udy Collection by home office of the P200 agency sales C. January 1 - 31 P50 disbursement from the revolving fund. d. January 31 Replenishment of the revolving fund. January 31 Closing entry to determine the profit attributable to the agency