Dayle Company

Combined Financial Statements Worksheet

For Year Ended December 31, 2011
Combined Statement of Combined Statement of
Adjusted Trial Balances Eliminations
Comprehensive Income Financial Position
Home Office Branch Debit Credit Debit Credit Debit Credit
Debits
Cash P 115,000 P 53,150 168,150
Accounts receivable 93,250 71,000 164,250
Merchandise inventory 103,900 (c) 11,500 (c) 11,500 P 103,900 P 333,900 333,900
Prepaid expenses 9,000 9,000
Investment in branch 230,000 (a) 230,000
Furniture and fixture 220,000 70,000 290,000
Purchases 721,500 90,300 811,800
Shipment from home office 279,000 (b) 279,000
Operating expenses 126,200 72,300 198,500
Total P 1,618,850 P 635,750

Credits
Accumulated depreciation P 33,000 33,000
Accrued expenses 5,250 5,250
Account payable 75,100 P 70,750 145,850
Home office current 230,000 (a) 230,000
Allowance for overvaluation 46,500 (b) 46,500
Ordinary Share, P 10 par 310,000 310,000
Accumulated Profits 331,500 331,500
Sales 585,000 335,000 920,000
Shipment to branch 232,500 (c) 232,500
Total P 1,618,850 P 635,750
P 520,500 P 520,500 P 1,114,200 P 1,253,900 P 965,300 P 825,600
139,700 139,700
P 1,253,900 P 1,253,900 P 965,300 P 965,300
(a) To eliminate the reciprocal accounts (c) To bring the ending inventory of the branch to its cost
(b) To eliminate the accounts on merchandise shipments