reconciliation statement for problem 5-3 and 5-4

PROBLEM 5-3. RECONCILIATION OF HO AND BRANCH ACCOUNTS The following were found in your examination of the interplant accounts between the Home Office and the Legaspi Branch: a. Transfer of fixed assets from Home office amounting to P53,960 was not booked by the branch. b. P10,000 covering marketing expense of another branch was charged by Home Office to Legaspi c. Legaspi recorded a debit note on inventory transfers from Home Office of P75,000 twice. d. Home office recorded cash transfer of P65,700 from Legaspi branch as coming from Naga branch. f. Legaspi recorded a debit memo from Home Office of P4,650 as P4,560. The balance in the Home Office books of its Investment in Legaspi Branch account was a debit balance of P165,920 before adjustments. 10 vismauve bovispell Required: Prepare a reconciliation statement for the home office and branch. PROBLEM 5-4. RECONCILIATION OF HO AND BRANCH ACCOUNTS On December 31, 2019, the Home Office Equity account on the branch books has a balance of P44,000 and the Investment in Branch account on the home office books has a balance of P85,000. In analyzing the activity in each of these accounts for December, you find the following differences: ring seiberTOM 1. A P10,000 branch remittance to the home office initiated on December 27, 2019, was recorded on the home office books on January 3, 2020. 2. A home office inventory shipment to the branch on December 28, 2019, was recorded by the branch on January 4, 2020; the billing of P20,000 was at cost. 3. The home office incurred P12,000 of advertising expenses and allocated P5,000 of this amount to the branch on December 15, 2019. The branch has not recorded this transaction. 4. A branch customer erroneously remitted P3,000 to the home office. The home office recorded this cash collection on December 23, 2019. Meanwhile, back at the home office, no entry has been made yet. 5. Inventory costing P43,000 was sent to the branch by the home office on December 10, 2019. The billing was at cost, but the branch recorded the transaction at P34,000