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Question 16 1 pts On December 31, 2019 the Investment in Branch account on the home office books of the Madamme Company shows a balance of P84,000, and the Home Office account on the books of the branch shows a balance of P97,350. The following data are determined in accounting for the difference. Merchandise billed at P6,150 was shipped by the home office to the branch on December 28. The merchandise is in transit and had not been recognized on the books of the branch. The branch collected a home office accounts receivable of P25,000, but failed to notify the home office of this collection The home office recorded incorrectly the branch net income at P11,250. The branch reported net income of P12.150. The home office was charged P6,400 when the branch returned merchandise to the home office on December 31. The merchandise is in transit What is the reconciled amounts of the reciprocal accounts on December 31? Question 17 1 pts For the year ended December 31, 2020, selected line items from the home office and branch columns of the combining statement worksheet follow: Home Office Branch Cost of Sales (P500,000) (P100,000) Branch Income 50,000 Net Income 180,000 30.000 Intracompany Profit Deferred 6,000 What amount would be reported in the combined column for Cost of Sales? DE V Question 18 1 pts The following information will be used for the next two questions Afar Corporation retails merchandise through its home office store and through a branch store in a distant city. Separate ledgers are maintained by the home office and the branch. The branch store purchases merchandise from the home office (at 120% of home office cost), as well as from outside suppliers. Selected information from the December 31, 2020 trial balances of the home office and branch is as follows: Home Office Branch Sales P120,000 P60.000 Shipments to branch 16.000 Purchases 70,000 11,000 Inventory, January 1, 2020 40.000 30.000 Shipments from home office 19.200 Shipments from home office 19.200 Expenses 28.000 12.000 Unrealized profit in branch inventory 7.200 Additional information: The entire difference between the shipment account is due to the practice of billing the branch at cost plus 20%. The December 31, 2020 inventories are P40,000 and P20.000 for the home office and the branch, respectively. (The branch purchased 16% of its ending inventory from outside suppliers.) Branch beginning and ending inventories include merchandise acquired from the home office as well as from outside suppliers. Merchandise acquired from home office is inventoried at 120% of home office cost. How much is the overvaluation of the Cost of Goods Sold? P4.400 P2,800 P7.200 RE Question 19 1 pts The following information will be used for the next two questions Afar Corporation retails merchandise through its home office store and through a branch store in a distant city. Separate ledgers are maintained by the home office and the branch. The branch store purchases merchandise from the home office (at 120% of home office cost), as well as from outside suppliers. Selected information from the December 31, 2020 trial balances of the home office and branch is as follows: Home Office Branch Sales P120.000 P60.000 Shipments to branch 16.000 Purchases 70.000 11.000 Inventory, January 1, 2020 40,000 30,000 CL $ Purchases 70,000 11,000 Inventory, January 1, 2020 40,000 30,000 Shipments from home office 19,200 Expenses 28,000 12.000 Unrealized profit in branch inventory 7.200 Additional information: The entire difference between the shipment account is due to the practice of billing the branch at cost plus 20%. The December 31, 2020 inventories are P40,000 and P20,000 for the home office and the branch, respectively. (The branch purchased 16% of its ending inventory from outside suppliers.) Branch beginning and ending inventories include merchandise acquired from the home office as well as from outside suppliers. Merchandise acquired from home office is inventoried at 120% of home office cost. . How much is the adjusted branch net income? gt Unrealized profit in branch inventory 7.200 . . Additional information: The entire difference between the shipment account is due to the practice of billing the branch at cost plus 20%. The December 31, 2020 inventories are P40,000 and P20,000 for the home office and the branch, respectively. (The branch purchased 16% of its ending inventory from outside suppliers.) Branch beginning and ending inventories include merchandise acquired from the home office as well as from outside suppliers. Merchandise acquired from home office is inventoried at 120% of home office cost. How much is the adjusted branch net income? P12.200 OP15,000 P10,600 P50.200 W II Question 20 1 pts The following information will be used for the next two questions Trial balances for the home office and the branch of the Sake Company show the following accounts on December 31, 2020. The home office policy of billing the branch merchandise is 20% above cost. Home Office Branch Allowance for overvaluation of branch merchandise P10.800 Shipments to branch 24.000 Purchases (outsiders) P7,500 28,800 Shipments from home office Merchandise inventory, December 31, 2019 45,000 w Allowance for overvaluation of branch merchandise P10,800 Shipments to branch 24,000 Purchases (outsiders) P7.500 Shipments from home office 28.800 Merchandise inventory, December 31, 2019 45,000 What part of the branch inventory as of December 31, 2019 represent goods acquired from the home office? Next Previous V
