Question
Problems, show supporting computations: 1. prepare journal entries for the home office and the branch. (48 pts) a. Cash of $5,000 was forwarded by the
Problems, show supporting computations:
1. prepare journal entries for the home office and the branch. (48 pts)
a. Cash of $5,000 was forwarded by the home office to the branch.
b. Merchandise with a home office cost of $55,000 was shipped to the branch.
c. Equipment was acquired by the branch for $1,000, to be carried in the home office accounting records.
d. The home office acquired a computer for the branch for $1,500.
e. Credit sales by the branch amounted $75,000 the branch’s cost of merchandise sold was $40,000
f. Collection of trade accounts receivable by the branch amounted to $40,000.
g. Payments for operating expenses by the branch totaled $18,000.
h. Cash of $27,500 was remitted by the branch to the home office.
i. Operating expenses incurred by the home office and charged to the branch totaled $5,000
j. Home office shipped merchandise at home office cost of $60,000 with a mark up of 20% to the branch.
2. Prepare the reconciliation of the reciprocal accounts before the closing entries
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