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Advanced Accounting - Part 2 Problem 8 Branch Income Statement Branch Reported Net Income
Advanced Accounting - Part 2 Problem 8 Branch Income Statement Branch Reported Net Income
Chapter 13
Problem 8
Branch Income Statement
Branch
Reported Net
Income
Sales
Less: Cost of Sales
Merchandise Inventory - beg
Home office
Outsider
Total
Add: Goods delivered during the period
Shipment from Home Office
Purchases
Total goods delivered
Goods available for sale
Less: Merchandise Inventory - end
Home office
Outsider
Total
Cost of goods sold
Gross profit
Less: Operating expenses
Result from operation
78,500
Billed
24,500
7,500
32,000
40,000
20,000
60,000
92,000
26,000
5,500
31,500
60,500
18,000
12500
5,500
8,000
Home office Income Statement
Sales
Less: Cost of Sales
Merchandise Inventory - beg
Add: Purchases
Goods available for sale
Less: Merchandise Inventory - end
Shipment to branch
Gross profit
Less: Operating expenses
Net income from own operation
Add: Branch true net income
Net income
55,000
30,000
Branch True
Net income
78,500
Cost
Realized profit
Allowance
20,000
7,500
27,500
4,500
4,500
30,000
20,000
50,000
77,500
10,000
19,500.00
5,500
25,000
52,500
26,000
12500
13,500
8,000
10,000
14,500
6,500
6,500
8,000
256,000
80,000
210,000
290,000
85,000
205,000
51,000
60,000
(9,000)
13,500
4,500
334,500
107,500
230,000
337,500
80,000
257,500
77,000
72,500
4,500