The answer are already highlighted, please just show the computations, thank you.

2. Miles Company established a branch in Ayala by sending merchandise costing P924,500 and effecting a fund transfer of P400,000 cash on January 1, 2020. The branch purchased computer equipment costing P420,000 on April 1. As per agreement, the home office will maintain all the property, plant and equipment records. Ayala branch collected P56,000 worth of Ortigas branch's receivable on August 4. Cash remittance to the home was P250,000 on September 28. On November 21, Ayala branch returned defective merchandise worth P125,000 to the home office. At the end of the year, the company's controller found out that the branch accountant had failed to record all the transactions initiated by the home office from the second half of the year. Because of this, there is a significant discrepancy between the balances of the reciprocal accounts. For the purpose of reconciling the reciprocal accounts, the controller instructed the accounting staff of the home office to send a copy of the Investment in Ayala general ledger to the branch. 240,000 225,000 12,500 Investment in Ayala 1/1 Merchandise to branch 924,500 4/2 Equipment acquisition 1/1 Fund transfer 400,000 9/30 Remittance 7/2 Merchandise to branch 135,000 11/22 Return of goods from branch 8/31 Fund transfer 95,000 10/5 Expense paid for branch 29,000 1. What is the unadjusted balance of the Home Office account? a. 598,500 b. 585,500 c. 723,500 d. 335,500 2. What is the adjusted balance of the reciprocal accounts? a. 844,500 b. 574,500 901,000 d. 596,500 c