Question 2: (5 points): B1, C1, C3

The following transactions pertains to Maram Merchandising Company:

1. The company invested $50,000 cash in Reef branch.
2. The company shipped merchandise to Reef branch costs $80,000.
3. Furniture was acquired by Reef Branch for $30,000 to be carried in home office accounting records.
4. Reef branch purchase $20,000 of merchandise from a supplier on account.
5. Reef branch sold merchandise by $100,000, and the COGS was $70,000
6. Reef branch paid $10,000 form Maram account payable balance.
7. Maram Company paid the total balance of branch accounts payable to the supplier.
8. Reef branch collects $60,000 from the total balance of its account receivables.
9. Reef paid $5,000 of operating expenses.
10. Maram paid $3,000 of branch operating expenses.
11. Reef transfer $25,000 to Maram.

Instructions:

For the following transactions prepare the journal entries on Maram and on the Reef branch records.