Requirements: 1. Working papers for the combined statements for the home office and its branch. 2. Separate income statement and balance sheet for the home office and its branch 3. Combined income statement and balance for the home office and its branch As of December 31, 1996, trial balances prepared for the Lady of the Night Co. and its pranch are shown below HOME GEECE BRANCH OFFICE DEBIT CREDIT DEBIT CREDIT 1220 P 22,700 Accounts receivable 29,400 21,000 Merchandise inventory January 1 22,000 25,000 Furnitures & fixtures 17,200 10,500 bouw. Dass Fur & Fix Store supplies 2.200 900 Branch 151,000 Shipments to branch 200,000 Branche allow 52,000 Account Payable 47.500 6,500 Home office 118,500 Capital stock 100.000 Retained carings 24,100 Sales 220,000 229,000 Purchases 350,700 25,200 Shipments from home office 230,000 Operating expenses 42.800 31,000 PR.POOD2092_1209 Additional Information 1. The mark-up on shipments has been constant at 25% above cost. 2. All cash colections made by the branch are deposited in a local bank to the account of the home office. Deposits of this nature included the following: Daddy Date recorded by Branch HO Amount December 26, 1996 December 31, 1996 P 3.000 December 30, 1996 January 6, 1967 10.000 January 2, 1967 January 6, 1967 5.000 3. Expenses of P2,500 charged by the home office to the branch have not yet been taken up by the branch 4. The inventories as of December 31, 1996 were: Home Ove P15,000 Branch (excluding in transit) from Home Office 6,000 From the suppliers 2,100 Requirements: 1. Working papers for the combined statements for the home office and its branch. 2. Separate income statement and balance sheet for the home office and its branch 3. Combined income statement and balance for the home office and its branch As of December 31, 1996, trial balances prepared for the Lady of the Night Co. and its pranch are shown below HOME GEECE BRANCH OFFICE DEBIT CREDIT DEBIT CREDIT 1220 P 22,700 Accounts receivable 29,400 21,000 Merchandise inventory January 1 22,000 25,000 Furnitures & fixtures 17,200 10,500 bouw. Dass Fur & Fix Store supplies 2.200 900 Branch 151,000 Shipments to branch 200,000 Branche allow 52,000 Account Payable 47.500 6,500 Home office 118,500 Capital stock 100.000 Retained carings 24,100 Sales 220,000 229,000 Purchases 350,700 25,200 Shipments from home office 230,000 Operating expenses 42.800 31,000 PR.POOD2092_1209 Additional Information 1. The mark-up on shipments has been constant at 25% above cost. 2. All cash colections made by the branch are deposited in a local bank to the account of the home office. Deposits of this nature included the following: Daddy Date recorded by Branch HO Amount December 26, 1996 December 31, 1996 P 3.000 December 30, 1996 January 6, 1967 10.000 January 2, 1967 January 6, 1967 5.000 3. Expenses of P2,500 charged by the home office to the branch have not yet been taken up by the branch 4. The inventories as of December 31, 1996 were: Home Ove P15,000 Branch (excluding in transit) from Home Office 6,000 From the suppliers 2,100
