The Wesley Company of Baguio City operates a branch in Dagupan. A branch balance sheet on December 31, 2013 showed the following balances: Cash P 35,000 P122,000 Accounts receivable 8,500 113,500 Less: Allowance for bad debts 165,000 Merchandise inventory 3,500 Prepaid expenses P38,500 Equipment 27,000 11,500 Less: Accumulated depreciation P328,500 Total assets P 20,000 Accounts payable 6,000 Accrued expenses 302,500 Home office P328,500 Liabilities Branch transactions during 2014 are summarized as follows: 1. Sales on account, P400,000 2. Purchases on account, P105,000 3. Goods received from home office, billing at cost, P200,000 4. Collections on account, P380,000 5. Payments on account, P101,000 6. Bad accounts written off, P6,000 7. Cash remittances to home office, P150,000 8. Expenses paid, P124,000 9. Expenses paid by home office and charged to branch, P8,000 10. Year-end adjusting data: Merchandise on hand, P194,000 Prepaid expenses, December 31, P4,500 Accrued expense, December 31, P4,000 Receivables estimated to be uncollectible, December 31, P8,000 Depreciation for 2014, P6,000 Required: a. Give the entries to be made by the branch for the year to record the transactions and to adjust and close the accounts at the end of the year. ended b. Prepare a statement of financial position, a statement of profit or loss, and a statement of changes in the home office account for the branch for the December 31, 2014. C. year Give all the entries that would be made by the home office in 2014 affecting the branch account. 1 T