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Question 3 (23.5 marks) A-The following transactions occurred between the home office and the Mason Branch of Victoria Company: 1) Home office transferred cash of

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Question 3 (23.5 marks) A-The following transactions occurred between the home office and the Mason Branch of Victoria Company: 1) Home office transferred cash of $5,000 to the branch. 2) Home office shipped merchandise costing S 90,000 to the branch at a markup of 20% on billed price. 3) Home office paid operating expenses of S 100,000 cash. 4) Home office allocated operating expenses of $ 20,000 to the branch. 5) Extra Branch informed the home office that it had collected $416 on a note receivable to the home office. Principal amount of the note was $400. 6) The home office informed the branch that it had paid $720 on a note payable of the branch. The principal amount of the note was $700. 7) Equipment was acquired by Mason Branch for $8500, to be carried in the home office accounting records. 8) Extra Branch made sales of S 80,000, terms 2/10, 1/30, the cost of goods sold was $45,000 and paid operating expenses $21,000 9) Collections of trade accounts receivable by Mason Branch amounted to $62,000. 10) Cash of $37,500 was remitted by Mason Branch to the home office. Required: Prepare journal entries for these transactions in the accounting records of the Home office and the Mason Branch (9.9 marks) B- The home office of Farah Company ships merchandise to the Nour branch at a billed price that includes a markup 25% on the billed price. The inventories ledger account of the branch, showed a December 31, 2019 debit balance .S120,000 a debit for a shipment received January 16, 2020 $500,000. total credits for goods sold during January 2020 S520,000 and January 31, 2020 debit balance $100,000 (all amounts are home office billed price). On January 31, 2020, Nour branch prepared an income statement indicating a net loss of $ 90,000 Required: 1. Prepare a working paper for the home office to analyze the flow of merchandise to Nour branch during January 2020. 2. Reconstruct a three column ledger account Allowance for overvaluation of inventories: Nour branch 3. Prepare journal entries for the home office of Farah Company on January 31, 2020. (10.8marks) C-If the reciprocal ledger account balances of Youssef Company's branch and home office are not in agreement at year-end, What factors might have caused this? Give examples. (28 Marku

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