(Problem 4.2) Included in the accounting records of the home office and Wade Branch, respectively, of Lobo Company were the following ledger accounts for the month of January 2005: CHECK FIGURE Investment in Wade Branch (in Home Office accounting records) Adjusted balances $42,600. Date Explanation Debit Credit Balance 2005 Jan. 1 Balance 39,200 dr 9 Shipment of merchandise 4,000. 43,200 dr 22 21 Receipt of cash 1,600 41,600 dr 27 Collection of branch trade accounts receivable 1,100 40,500 dr FE 31 Shipment of merchandise 6,000 46,500 dr 31 Payment of branch trade accounts payable 2,000 48,500 dr Home Office (in Wade Branch accounting records) Date 2005 Jan. 1 Balance 10 Receipt of merchandise 19 28 30 31 Explanation Debit Credit Balance 39,200 cr. 4,000. 43,200 cr Remittance of cash Acquisition of furniture Return of merchandise Remittance of cash. 1,600 41,600 cr 1,200 40,400 cr 2.200 38,200 cr 2,500 35,700 cr Home Office (in Wade Branch accounting records) Date Explanation Debit Credit Balance 2005 Jan. 1 Balance 39,200 cr. 10 Receipt of merchandise 4,000. 43,200 cr 19 Remittance of cash 1,600 41,600 cr 28 Acquisition of furniture 1,200 40,400 cr 30 Return of merchandise 2.200 38,200 cr 31 Remittance of cash 2,500 35,700 cr Instructions a. Prepare a working paper to reconcile the reciprocal ledger accounts of Lobo Company's home office and Wade Branch to the corrected balances on January 31, 2005. b. Prepare journal entries on January 31, 2005, for the (1) home office and (2) Wade Branch of Lobo Company to bring the accounting records up to date. Both the home office and the branch use the perpetual inventory system,