Transactions for the first 3-month period of calendar year 2021 for Sta Cruz Branch of XYZ Company. 1. Home Office put up a branch with initial investment of cash 400,000; and equipment 180,000, and furniture & fixtures, 100,000, both to be booked in the branch. 2. Home office purchased equipment for use by the branch and to be carried in the Home Office books. Acquisition cost is 80,000. 3. Branch purchased 160,000 worth of merchandise for 50% cash and balance on account. Delivery charge of 3,000 paid by the branch. 4. Home Office ordered office table and chairs worth 20,000 to be carried in branch books. The branch paid cash for the items upon delivery directly to the branch. Delivery charge of 800 was also paid by the branch. 5. Branch purchased computers and printers worth 110,000 for use of the branch and to be booked in the Home Office. 6. Home Office transferred merchandise worth 320,000. Home Office paid for the freight of 5,000 to be taken up in branch books. 7. Branch total sales to date on account is 600,000 and cash 100,000. 8. Home Office collected 100,000 from Branch's customers on account. 9. Branch collected 460,000 from customers on account. 10. Branch share from Home Office in advertising and office supplies expenses are 10,000 and 3,000, respectively. 11. Branch salaries paid to its staff is 80,000 and unpaid utilities incurred is 6,000 12. Branch remitted cash of 300,000 to Home Office. 13. Straight line method of depreciation is used for all the fixed assets with 5% of their costs as scrap value. All of the equipment are expected to last for 5 year, while Furniture & Fixtures for 10 years. The branch operates only for 3-month period (the 1st quarter of calendar year 2022. Requirements: a. Prepare the journal entries for both the Home Office and Branch books based on the above transactions. b. The Inventory in the Branch at the end of the period is 60,000. Prepare the income statement and determine the Branch profit for the first 3 month of its operation.