Use the following information for questions 1 & 4:

Use Selected balances from the Hetona Company's Branch A and B are as follows:

Branch A Branch B

Inventory, Jan. 1, 2019 21,000 19,000

Imprest Branch Fund 2,000 1,500

Inventory, Dec. 31, 2019 19,000 12,000

A/Receivable, Jan. 1, 2019 55,000 43,500

Merchandise from Home Office 61,000 47,000

A/Receivable, Dec. 31, 2019 70,000 53,500

Cash Collections 85,000 70,000

Sales 100,000 80,000

Cash Expenses 21,000 14,300

All sales, collections, and expenses are handled at the branch. All cash received from sales and collections are sent directly to the Home Office. Expenses are paid by the branch from the imprest fund and immediately reimbursed by the Home Office and credited to the Home Office account. All expenses paid by the branch are recorded in the books of the branch. Determine the following:

1. The net profit of Branch A is __________.

2. The balance of the Home Office account of Branch A on January 1, 2019 __________.

3. The balance of the Home Office account of Branch B on January 1, 2019 __________.

4. The balance of the Home Office account of Branch B on December 31, 2019 __________.

Use the following information for questions 5 to 7:

Damangdama Corporation has operated a branch in Cavite for one year. Shipments are billed to the branch at cost. The branch carries its own accounts receivable, makes its own collections, and pays its own expenses. The transactions for the year are given effect to in the trial balance below:

Accounts

Cash 5,040 (debit)

Home Office Current 21,000( Credit)

Purchases from outsiders 25,000(Debit)

Shipments from Home Office 56,216 (Debit)

Accounts receivable 15,360 (Debit)

Expenses 7,500 (Debit)

Interest expense 684(Debit)

Gain on sale of equipment 8,800 (Credit)

Sales 80,000 (Credit)

P109,800 (Total debit)

P109,800 (Total Credit)

The branch reported an inventory on December 31, 2015:

Outsiders, P3,391; Home office, P7,625

5. The net profit of the Cavite Branch for 2015 was: __________.

6. On January 1, 2016, the Branch current account in the Home Office books should have a balance of:____________.

7. On January 1, 2016, the Shipments to Branch account in the Home Office books should have an opening balance of: __________.

Use the following information for questions 8 to 10:

On July 1, 2019, the Hapdi Company of DJ Builders Company of Cagayan Valley establishes an organization in Sta. Mesa, Manila to act as sales agency. The following assets are sent to the agency on July 1:

A working fund to be operated under the imprest fund 1,000

Samples from the merchandise stock 5,000

Advertising materials and literature 1,250

During July the agency submits sales on account of P17,600 that are approved by the home office; cost of merchandise shipped in filling orders is P10,500. Home office disbursements chargeable to the agency are as follows:

Furniture and fixtures for agency 2,400

Salaries and commissions 1,750

Rent 800

Total 4,950

On July 31 the agency working fund is replenished. Paid expense vouchers submitted by the agency are as follows:

Advertising expense 325

Miscellaneous expense 600

The following information is used in adjusting the agency accounts on July 31:

Agency samples will be useful until December 31; at that time it is believed they will have a salvage value of 40% of cost.

Approximately 2/5 of the advertising materials and literature remain on hand. Furniture and fixtures are to be depreciated on a 5-year basis.

The agency manager is to receive a bonus of 5% of all sales above P10,000 a month, the bonus to be paid by the home office at quarterly intervals.

8. Determine the gross profit for the month ended July 31, 2019. __________.

9. Determine the amount of expenses for the month ended July 31, 2019.________.

10. Determine the net income for the month ended July 31, 2019. __________.

Use the following information for questions 11 and 12:

Shawi Branch of Bhigo Company, at the end of the first quarter operations submitted the following income statement:

Sales 300,000

Cost of sales:

Shipments from Home Office 280,000

Local Purchases 30,000

Total 310,000

Inventory at the end 50,000 260,000

Gross profit on sales 40,000

Expenses 35,000

Net income 5,000

Shipment to the branch were billed at 140% of cost. The branch inventory at March 31 amounted to P50,000 of which P6,600 was locally purchased. Mark-up on local purchases, 20% over cost. Branch expenses incurred by Head Office amounted to P2,500 not yet recorded by the branch.

11.The branch ending inventory that should be presented in the combined income statement is __________.

12. The true branch net income is __________.

Question no. 13- In 2019, a home office shipped costing P60,000 to its branch for P90,000. At the end of 2019, the branch reported P30,000 of its inventory in its balance sheet. The amount of unrealized intracompany profit at the end of 2019 is __________.

Question no. 14- A home office ships inventory costing P40,000 to its branch at a transfer price of P50,000. The mark up percentage (rounded) using the branch's cost basis is: __________.

Question no. 15- In 2019, a home office shipped inventory costing P400,000 to its newly established branch at a transfer price of P480,000. In the branch's year -end closing entries, the branch charged P360,000 of this inventory to Cost of Sales. The adjusted general ledger balance in the Intracompany Profit Deferred account at year end should be _________.

The following were found in your examination of the interplant accounts between Home Office and the Tagactac Branch:

1. Transfer of fixed assets from Home Office amounting to P53,960 was not booked by the branch.

2. P10,000 covering marketing expense of another branch was charged by Home Office to Tagactac.

3. Tagactac recorded a debit note on inventory transfer from Home Office of P75,000 twice.

4. Home Office recorded cash transfer of P65,700 from Tagactac Branch as coming Lagabac Branch.

5. Tagactac reverse a previous debit memo from Bulacsac Branch amounting to P10,500. Home Office decided that this charge is appropriately Lagabac Branch's cost.

6. Tagactac recorded a debit memo from Home Office of P4,650 as P4,560.

1. The net adjustment in the home office books related to the Tagactac Branch Current Account is __________.

2. The net adjustment is Tagactac's books related to Home Office account is __________.

3. Before the above discrepancies were given effect, the balance in the home office books of its Tagactac Branch Current account was a debit balance of P165,920. The unadjusted balance in the Tagactac Branch books of its Home Office Current account must be __________.

4. The adjusted balance of the reciprocal accounts is __________.

The Lagapac Corporation operates a branch in Cordillera. The information from December 31, 2019 trial balance are as follows: Home Office Cordillera Branch

SalesP840,000P420,000

Shipments to branch280,000

Purchases490,000

Shipments from home office350,000

Inventory, January 1, 20X9140,00056,000

Inventory at December 31, Home Office P42,000; Branch, P84,000.

Compute the realized inventory profit at home office from sales made by the branch (the overvaluation of cost of goods sold)? __________.