Requirements: a. Provide entries in each of the books of the home office and branch. Provide also the closing entries.

B. Reconcile the reciprocal accounts at the end of thw period

C. Prepare the statement of financial positiom and statement of profit or loss of the branch

Journal entries - Home office and Branch transactions 1. On January 1, 20x1, Mark Ngina's Peanuts Corporation A establishes a branch for an initial cash investment of P500,000. In The following are the other transactions during January 20x1: Sh a. The branch purchases inventory worth P200,000 on account, half of which is charged on account of the home Fr office. The company uses a periodic inventory system. b. The branch acquires equipment for P120,000 cash. The In equipment will be carried in the books of the branch. c. The home office transfers old equipment with carrying amount of P60,000 and accumulated depreciation of P300,000 to the branch. The branch records the original cost of the equipment and the related accumulated depreciation in its books. d. The branch makes total cash sales of P600,000. e. The branch remits P80,000 cash to the home office. f. The branch pays expenses of P150,000. g. Depreciation expense for the period is P10,000. h. The home office allocates P25,000 expense to the branch representing the branch's share in the maintenance costs of the company's management information systems. i. Unsold goods at the end of the period amount to P20,000. Requirements