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529 c. 111,000 (RPCPA) d. 63,000 credited to the 'Home Office' account. All expenses paid by the branch are recorded in the books of the branch. How much are the 14. Information on a home office and its branch is as follows: balances of the 'Home Office' accounts on Jan. 1, 20x1? Home office Branch A Branch B 12,000 Branch Branch A Inventory, beg. a. 78,000 67,000 Branch B C. 64,000 Purchases 150,000 8,000 b. 75,000 64,000 78,000 d. 78,000 Shipments from home office 30,000 RPCPA) 64,000 Shipments to branch 93,750 75,000 Branch inventory allowance 19,750 16. A branch's individual statement of profit or loss is as follows: Sales 115,000 Sales 176,500 300,000 Inventory, end. 14,000 Cost of sales: 10,350 Shipments from home office 280,000 The branch's ending inventory includes P4,350 from external Local purchases 30,000 purchases. From the home office's viewpoint: (1) what is the Total 310,000 Inventory, end. branch's true cost of sales; and (2) how much is the (50,000) (260,000) Gross profit on sales understatement of the branch's profit? 40,000 Expenses a. 97,120; 18,550 c. 102,850; 18,550 (35,000) Profit b. 102,850; 18,250 5,000 d. 121,400; 18,000 RPCPA - Adapted) Shipments to the branch are billed at 140% of cost. The branch's 15. Information relating to two branches is as follows: ending inventory is P50,000, of which P6,600 are from local Branch A Branch B purchases. Markup on local purchases is 20% over cost. The Inventory, Jan. 1, 20x1 21,000 19,000 branch failed to record a P2,500 allocated expense from the home Imprest Branch Fund 2,000 1,500 office. What are the amounts of the branch's (1) ending inventory Inventory, Dec. 31, 20x1 19,000 12,000 to be included in the combined financial statements and (2) true Accounts receivable, Jan. 1, 20x1 55,000 43,500 profit, respectively? Merchandise from home office 61,000 47,000 a. 37,600; 70,100 c. 50,000; 70,100 Accounts receivable, Dec. 31, 20x1 70,000 53,500 b. 37,600; 2,500 d. 50,000; 2,500 Cash collections 85,000 70,000 RPCPA - Adapted) 80,000 Sales 100,000 14,300 17. The following information pertains to a home office and its Cash expenses 21,000 branch for the year 20x1: All sales, collections and expenses are handled at the branch. All Home office Branch Sales 250,000 75,000 cash received from sales and collections are sent directly to the 200,000 15,000 home office. Expenses are paid by the branch from the imprest Purchases from outsiders Shipments to branch 30,000 fund and immediately reimbursed by the home office and Shipments from HO @ 125% billed price 32.50 40,000 10,000 Expenses Inventory, beg. 80,000 - Home office Branch: 7,500 From outsiders 24,000 From HO billed @ 120% above cost Inventory, end 55,000 - Home office Branch: 5,500 From suppliers 21,000 From home office How much is the merchandise in-transit at year end (at billed price) and how much is the combined cost of goods sold? a. 5,000; 241,200 c. 3,500; 242,400 b. 5,000; 240,000 d. 3,500; 245,200 (RPCPA - Adapted)