Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Home office has two branches, Pasig and Makati. At the end of the year, December 31, 2022, the reciprocal account in Pasig branch was

The Home office has two branches, Pasig and Makati. At the end of the year, December 31, 2022, the reciprocal account in Pasig branch was P256,600. However, there were transactions discovered to have errors: The home office shipped merchandise costing P87,000 to Pasig branch, but was record by the branch in the amount of P78,000 Pasig collected Makati's customer accounts worth P25,000, but Makati charged its reciprocal account in the amount of P52,000 and the home office recorded the correct transactions The Pasig branch brought P56,500 worth of equipment with useful life 4 years on June 1, 2022, for use of the home office and it was the policy of the company that the equipment will be recorded by the branch, but Pasig recorded it as P56,050. It was indicated also in the policy that the straight line method of depreciation will be used. The home office and Pasig branch did not record any depreciation for the said equipment 1. What is the unadjusted balance of the Investment in Pasig account? 2. What is the net adjustment debit (credit) in the Home Office Current account? a. (760) The Home office has two branches, Pasig and Makati. At the end of the year, December 31, 2022, the reciprocal account in Pasig branch was P256,600. However, there were transactions discovered to have errors: The home office shipped merchandise costing P87,000 to Pasig branch, but was record by the branch in the amount of P78,000 Pasig collected Makati's customer accounts worth P25,000, but Makati charged its reciprocal account in the amount of P52,000 and the home office recorded the correct transactions The Pasig branch brought P56,500 worth of equipment with useful life 4 years on June 1, 2022, for use of the home office and it was the policy of the company that the equipment will be recorded by the branch, but Pasig recorded it as P56,050. It was indicated also in the policy that the straight line method of depreciation will be used. The home office and Pasig branch did not record any depreciation for the said equipment 1. What is the unadjusted balance of the Investment in Pasig account? 2. What is the net adjustment debit (credit) in the Home Office Current account? 3.. What is the adjusted balance of the reciprocal accounts? a. 2 b. 257,360 c. 239,360 d. 247,600 24. What is the adjusted balance of the reciprocal accounts? d. 247,600

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Decision Making And Control

Authors: Jerold Zimmerman

10th Edition

1259969495, 978-1259969492

More Books

Students also viewed these Accounting questions

Question

=+b) Which model do you prefer? Explain briefly. Section 18.4

Answered: 1 week ago

Question

1. Build trust and share information with others.

Answered: 1 week ago