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The inter-office accounts between the main office of ABC Company and its branch in Ayala were adjusted to 145,500 as of December 31, 2020. The

The inter-office accounts between the main office of ABC Company and its branch in Ayala were adjusted to 145,500 as of December 31, 2020. The transactions between the home office and the branch for 2020 were:

1. Remittance by the branch (38,000 was still in transit as of December 31, 2020) 178,000.

2. Shipments to branch (includes goods worth 44,000 that are not yet received by the branch as of December 31, 2020) are 470,000.

3. The home office has not yet informed the branch of its share in the advertising expense amounting to 15,000.

4. Accounts receivable of the branch amounting to 30,000 was collected by home office, net of 4% discount. The branch has not yet been notified.

5. The home office incorrectly credited the branch by 10,000 for the remittance of its Cubao Branch. The Ayala Branch made no entry.

6. The home office corrected the above entry on January 5, 2021, however, the Ayala Branch inadvertently received copy of this memo and entered a credit in favor of the home office as of December 31, 2020.

7. The branch returned merchandise worth 12,500 to the office and was duly acknowledge by the latter during the year.

Required:

I. The unadjusted balance of the Home Office Current account as of December 31, 2020

II. The adjusted balance of the inter-office accounts as of December 31, 2020

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