Question 3: (10 points) A1, B1, C1, C3

On April 5, 2020, Gulf Company established the Zain Branch. Following are the initial transactions between the home office and Zain Branch:

April.

10

Home office sent $10,000 to the branch in cash.

15

Home office shipped merchandise costing $60,000 to the branch.

25

Branch acquired store fixtures for $15,000 cash and a note payable of $10,000; both the fixtures and the note payable will be carried in the accounting records of the home office.

27

Operating expenses incurred by the home office and charged to Zain Branch totaled $4,000.

30

The branch remitted (transfer) $40,500 cash to the company.

Both the home office and the Zain Branch use the perpetual inventory system.

Instructions:

Prepare journal entries for the foregoing transactions in the accounting records of the Zain Branch and the Gulf Company.

Question 3: (10 points) A1, B1, C1, C3 On April 5, 2020, Gulf Company established the Zain Branch. Following are the initial transactions between the home office and Zain Branch: April. 10 Home office sent $10,000 to the branch in cash. 15 Home office shipped merchandise costing $60,000 to the branch. 25 Branch acquired store fixtures for $15,000 cash and a note payable of $10,000; both the fixtures and the note payable will be carried in the accounting records of the home office. 27 Operating expenses incurred by the home office and charged to Zain Branch totaled $4,000. 30 The branch remitted (transfer) $40,500 cash to the company. Both the home office and the Zain Branch use the perpetual inventory system. Instructions: Prepare journal entries for the foregoing transactions in the accounting records of the Zain Branch and the Gulf Company