TUGAS PRAKTIKUM AKUNTANSI KEUANGAN LANJUTAN FATA 2017

LAB 1

HOME OFFICE AND BRANCH OFFICE

Tiotta Corporation is a multi-national company, located in Dallas, Texas. Recently, the corporation
opened a branch office in Fort Worth, Texas. Transactions and events affecting the Fort Worth
branch during 2020 are summarized as follows:

a. Received $15,000 cash and equipment worth $1,200 from home office.
b. Received shipments from the home office costing $2,000.
c. Purchased merchandise from Alta Wholesalers $3,000, recorded using periodic inventory
system
d. Returned 40% of the merchandise shipped by home office.
e. Paid $1,000 for advertising, 50% of which is home office expense
f. Remitted $2,500 to the home office.
g. Collected $7,000 on account receivable
h. Received shipments from the home office costing $5,000, excluding markup of 25%
recorded at cost.
i. Purchased $355 of office supplies, paid in cash
j. Home office allocated $250 of rent expense to branch office
k. Collected a note for the home office in the amount of $1,500 plus $150 interest

Additional Information :

Home Office Branch Office

Sales $859,000 $15,500
Ending Inventory $92,000 $3,900
Purchase $63,000 $3,000

Instruction:

(i) Prepare journal entries to reflect the transaction and events in the accounts of the branch
and the home office.

DINI – JOSEPHINE - LUMONGGA FATA 2017

TUGAS PRAKTIKUM AKUNTANSI KEUANGAN LANJUTAN FATA 2017

(ii) At the end of the period, branch office has $3,900 worth of ending inventory, one third of
which was acquired from home office at excess cost. Please prepare adjusting and closing
entries necessary.

DINI – JOSEPHINE - LUMONGGA FATA 2017

 TUGAS PRAKTIKUM AKUNTANSI KEUANGAN LANJUTAN FATA 2017

JAWABAN LAB 1

HOME OFFICE AND BRANCH OFFICE

Home Office (In $) Branch Office (In $)

a Branch Office 16,200 Cash 15,000
Cash 15,000 Equipment 1,200
Equipment 1,200 Home Office 16,200
b Branch Office 2,000 Shipment from Home 2,000
Shipment to Branch 2,000 Home Office 2,000
c Purchase 3,000
Cash 3,000
d Shipment to Branch 800 Home Office 800
Branch Office 800 Shipment from Home 800
e Advertising Expense 500 Advertising Expense 500
Branch Office 500 Home Office 500
Cash 1,000
f Cash 2,500 Home Office 2,500
Branch Office 2,500 Cash 2,500
g Cash 7,000
Account Receivable 7,000
h Branch Office 6,250 Shipment from Home 6,250
Shipment to Branch 5,000 Home Office 6,250
Loading in Branch 1,250
i Supplies 355
Cash 355
j Branch Office 250 Rent Expense 250
Rent Expense 250 Home Office 250
k Branch Office 1,650 Cash 1,650
Notes Receivable 1,500 Home Office 1,650
Interest Revenue 150

DINI – JOSEPHINE - LUMONGGA FATA 2017

 TUGAS PRAKTIKUM AKUNTANSI KEUANGAN LANJUTAN FATA 2017

Adjusting and Closing Entries

Home Office Branch Office
Branch Office 8,200 Sales 15,500
Branch Profit 8,200 Ending Inventory 3,900
Loading in Branch 990* Purchase 3,000
Branch Profit 990* Advertising Expense 500
Rent Expense 250
Shipment from Home 7,450
Home Office 8,200

*markup = 25% ; Ending inventory from Home Office = 1,300 (3,900 x 1/3)

→ Ending inventory from Home Office before markup = 1,300 : 125% = 1,040
→ Loading in branch for 1,300 ending inventory = 1,300 – 1,040 = 260
→ Realized loading inventory = 1,250 – 260 = 990

DINI – JOSEPHINE - LUMONGGA FATA 2017