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    Investment in Branch Account (Home Office Books) : Adjusting Entries

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    CJ Saria
    This document contains two problems regarding the reconciliation of intercompany accounts between a home office and branch. Problem 12-7 shows the unadjusted balances in the investment in branch and home office accounts on the home office and branch books. It also lists the adjusting entries needed to reconcile the accounts. Problem 12-8 provides a reconciliation statement comparing the investment in branch and home office account balances between the two sets of books, along with the adjusting entries required.

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    Investment in Branch Account (Home Office Books) : Adjusting Entries

    Uploaded by

    CJ Saria
    11 views1 page
    This document contains two problems regarding the reconciliation of intercompany accounts between a home office and branch. Problem 12-7 shows the unadjusted balances in the investment in branch and home office accounts on the home office and branch books. It also lists the adjusting entries needed to reconcile the accounts. Problem 12-8 provides a reconciliation statement comparing the investment in branch and home office account balances between the two sets of books, along with the adjusting entries required.

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    ADvACC

    Original Title

    Problem 12 78 advacc

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    This document contains two problems regarding the reconciliation of intercompany accounts between a home office and branch. Problem 12-7 shows the unadjusted balances in the investment in branch and home office accounts on the home office and branch books. It also lists the adjusting entries needed to reconcile the accounts. Problem 12-8 provides a reconciliation statement comparing the investment in branch and home office account balances between the two sets of books, along with the adjusting entries required.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    11 views1 page

    Investment in Branch Account (Home Office Books) : Adjusting Entries

    Uploaded by

    CJ Saria
    This document contains two problems regarding the reconciliation of intercompany accounts between a home office and branch. Problem 12-7 shows the unadjusted balances in the investment in branch and home office accounts on the home office and branch books. It also lists the adjusting entries needed to reconcile the accounts. Problem 12-8 provides a reconciliation statement comparing the investment in branch and home office account balances between the two sets of books, along with the adjusting entries required.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 1

    Problem 12-7

    a.

    b.

    Investment in Branch account (Home Office Books)


    Unadjusted balance, Dec. 31
    Cash remittance in transit
    Merchandise returns in transit
    Adjusted balance, Dec. 31

    P166,400
    (30,000)
    (12,000)
    P124,400

    Home Office account (Branch Books)


    Unadjusted balance, Dec. 31
    Error in recording expense
    Shipment in transit
    Supplies charged to branch
    Collection of branch receivable
    Adjusted balance, Dec. 31

    P103,200
    7,200
    24,000
    8,000
    ( 18,000)
    P124,400

    Adjusting Entries
    Home Office Books
    Cash
    30,000
    Shipment to branch
    12,000
    Investment in branch
    42,000

    Branch Books
    Shipment from HO
    24,000
    Supplies
    8,000
    Expenses
    7,200
    Accounts receivable
    18,000
    Home office
    21,200

    Problem 12-8
    (1)

    Reconciliation Statement
    (Home Office Books) (Branch Books)
    Investment in Branch
    Home Office
    Unadjusted balances, 1/31
    Advertising charged to branch
    Home office AR collected by branch
    Shipment in transit
    Error in recording receipt of merchandise
    Understatement of depreciation
    Remittance in transit, 1/31

    (2)

    P59,720

    P 43,268
    480

    600
    ( 180)
    ( 432)
    (12,800)
    P47,088

    P 47,088

    Adjusting Entries
    Home Office Books
    Retained earnings
    Cash
    Accounts receivable
    Investment in branch

    Branch Books
    432
    12,800

    Advertising
    480
    Shipments from HO
    3,520
    600
    Shipment from HO
    12,632
    Home office

    180
    3,820

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