Moreno Company operates a branch in Rizal. There are shipments in transit from the home office to the branch. The home office ships merchandise to the branch at 125% of the cost in 20x1. Profit and loss data for the home office and the branch for 20x1 follows: Sales Purchases from outsiders Shipment to branch (at cost) Billing price to branch Expenses Inventories, January 1, 20x1 Home office: Acquired from outsiders, at cost Branch: Acquired from outsiders, at cost Acquired from the home office at a billed price (20% above cost) Inventories, December 31, 20x1 Home office: Acquired from outsiders, at cost Branch: Acquired from outsiders, at cost Acquired from the home office at a billed price in 20x1 (physical count) REQUIRED: 1. Merchandise in transit 2. Combined cost of goods sold 3. Realized markup 4. True branch net income Home Office P500,000 400,000 60,000 80,000 160,000 110,000 Branch P150,000 30,000 65,000 20,000 15,000 48,000 11,000 42,000

Moreno Company operates a branch in Rizal. There are shipments in transit from the home office to the branch. The home office ships merchandise to the branch at 125% of the cost in 20x1. Profit and loss data for the home office and the branch for 20x1 follows: Sales Purchases from outsiders Shipment to branch (at cost) Billing price to branch Expenses Inventories, January 1, 20x1 Home office: Acquired from outsiders, at cost Branch: Acquired from outsiders, at cost Acquired from the home office at a billed price (20% above cost) Inventories, December 31, 20x1 Home office: Acquired from outsiders, at cost Branch: Acquired from outsiders, at cost Acquired from the home office at a billed price in 20x1 (physical count) REQUIRED: 1. Merchandise in transit 2. Combined cost of goods sold 3. Realized markup 4. True branch net income Home Office P500,000 400,000 60,000 80,000 160,000 110,000 Branch P150,000 30,000 65,000 20,000 15,000 48,000 11,000 42,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers: Record on page 10 of the journal Mar. 2 Sold merchandise on account to Equinox Co., $20,000, terms FOB destination, 1/10, n/30. The cost of the merchandise sold was $13,150. 3 Sold merchandise for $10,950 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $7,100. 4 Sold merchandise on account to Empire Co., $51,450, terms FOB shipping point, n/eom. The cost of merchandise sold was $35,420. 5 Sold merchandise for $27,900 plus 6% sales tax to retail customers who used MasterCard. The cost of merchandise sold was $18,470. 12 Received check for amount due from Equinox Co. for sale on March 2. 14 Sold merchandise to customers who used American Express cards, $12,380. The cost of merchandise sold was $9,120. 16 Sold merchandise on account to Targhee Co., $28,500, terms FOB…
The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to other businesses and occasionally to retail customers: Record on page 10 of the journal Mar. 2 Sold merchandise on account to Equinox Co., $18,900, terms FOB destination, n/30. The cost of the goods sold was $13,300. 3 Sold merchandise for $11,350 plus 6% sales tax to retail cash customers. The cost of the goods sold was $7,000. 4 Sold merchandise on account to Empire Co., $55,400, terms FOB shipping point, n/eom. The cost of the goods sold was $33,200. 5 Sold merchandise for $30,000 to retail customers who used MasterCard. The cost of the goods sold was $19,400. The printed receipts for retail customers included a coupon for $2 off the customer’s next purchase. It is estimated that 2,000 of the coupons will be redeemed. Create a compound journal entry for the sale and coupon payable estimate. 14 Sold $18,000 of merchandise to retail customers who…
The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to other businesses and occasionally to retail customers: Record on page 10 of the journal Mar. 2 Sold merchandise on account to Equinox Co., $18,900, terms FOB destination, n/30. The cost of the goods sold was $13,300. 3 Sold merchandise for $11,350 plus 6% sales tax to retail cash customers. The cost of the goods sold was $7,000. 4 Sold merchandise on account to Empire Co., $55,400, terms FOB shipping point, n/eom. The cost of the goods sold was $33,200. 5 Sold merchandise for $30,000 to retail customers who used MasterCard. The cost of the goods sold was $19,400. The printed receipts for retail customers included a coupon for $2 off the customer’s next purchase. It is estimated that 2,000 of the coupons will be redeemed. Create a compound journal entry for the sale and coupon payable estimate. 14 Sold $18,000 of merchandise to retail customers who…
Elizabeth Sales decided to create a branch in Naga City at the start of 20XX. The branch operation had the following transactions during 20XX: 1. Merchandise costing P350,000 and cash of P200,000 were transferred from the home office. 2. The branch purchased on account additional merchandise inventory of P400,000 from other distributors. 3. Sales of P650,000 were made by the branch during the period. The cost of these sales was P425,000. Cash of P600,000 was collected from sales during the year. 4. Advertising costs of P40,000, sales commissions of P65,000, and other operating expenses of P45,000 were incurred and paid by the branch. 5. The branch paid P370,000 on account to other distributors and remitted P120,000 to the home office. Required: 1. Record each of the transactions on the books of the branch. 2. Prepare an income statement for the branch for 20XX. 3. Prepare a balance sheet as of December 31, 20XX, for the branch.
Ginebra Corporation operates a branch in Cebu City to which it bills merchandise at an arbitary price representing a mark-up of 33 1/3% above cost. The following data from the books of the Home Office and Branch for the year ended December 31, 2021 given: HOME OFFICE BRANCH Inventories, Jan. 1 30, 000 12, 000 Purchases 245, 000 Shipments to branch 60, 000 Sales 280, 000 68, 000 Inventories, Dec. 31 35, 000 15, 000 Shipments from home office 80, 000 Expenses 36, 500 10, 200 Compute the combined net income of the home office and branch.
Consider the following perpetual system merchandising transactions of Belton Company. Use a separate account for each receivable and payable; for example, record the sale on June 1 in Accounts Receivable—Avery & Wiest. June 1 Sold merchandise to Avery & Wiest for $9,850; terms 2/5, n/15, FOB destination (cost of sales $7,000). 2 Purchased $5,250 of merchandise from Angolac Suppliers; terms 2/10, n/20, FOB shipping point. 4 Purchased merchandise inventory from Bastille Sales for $12,100; terms 3/15, n/45, FOB Bastille Sales. 5 Sold merchandise to Gelgar for $11,700; terms 1/5, n/15, FOB destination (cost of sales $8,050). 6 Collected the amount owing from Avery & Wiest regarding the June 1 sale. 12 Paid Angolac Suppliers for the June 2 purchase. 20 Collected the amount owing from Gelgar regarding the June 5 sale. 30 Paid Bastille Sales for the June 4 purchase. Prepare General Journal entries to record the above transactions. Based on the…
Show the solution in good accounting form The home office ships merchandise to the branch at 25 percent above cost. At what amount should the Home Office account be credited if merchandise costing P120,000 will be shipped?
Bookmoto Marketing has the following transactions for the month of March, 200x: Mar 2 - Sold merchandise on account, P700,000; terms 10; 5/15, n/30. FOB destination, freight collect, P15,000 Mar 10 - Received sales returns, P25,000 from March 2 sales Mar 15 - Collected sales on March 2 Mar 26 - Sold goods on account, P560,000. FOB, shipping point, freight collect, P36,000 Required: Journalize the above transactions using PERPETUAL METHOD (Assume that cost of sales is 60% of the invoice price)
Bookmoto Marketing has the following transactions for the month of March, 200x: Mar 2 - Sold merchandise on account, P700,000; terms 10; 5/15, n/30. FOB destination, freight collect, P15,000 Mar 10 - Received sales returns, P25,000 from March 2 sales Mar 15 - Collected sales on March 2 Mar 26 - Sold goods on account, P560,000. FOB, shipping point, freight collect, P36,000 Required: Journalize the above transactions using PERIODIC МЕТHOD
1. On February 5, the company purchased $50,000 of merchandise at FOB shipping point. shipping costs $5,000 and will arrive 6 days later. there is an agreement with the seller that the seller prioritizes transportation costs. 2% discount terms for 10 days. Journalize this transaction. 2. the same data make a journal using fob destination 3. when the goods receipt report is made. 4. What is the contents of the invoice that will be received from the seller?.
Home office shipped merchandise costing $120,000 to branch at a billed price of $168,000. Assume at the end of the accounting period, the branch reports its inventories (at billed price) at $28,000. Instructions: Prepare the working paper for a home office to analyze the flow of merchandise to the branch.
The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers:Mar. 2. Sold merchandise on account to Equinox Co., $18,900, terms FOB destination, 1/10, n/30. The cost of the merchandise sold was $13,300.3. Sold merchandise for $11,350 plus 6% sales tax to retail cash customers.The cost of merchandise sold was $7,000.4. Sold merchandise on account to Empire Co., $55,400, terms FOB shipping point, n/eom. The cost of merchandise sold was $33,200.5. Sold merchandise for $30,000 plus 6% sales tax to retail customers who used MasterCard. The cost of merchandise sold was $19,400.12. Received check for amount due from Equinox Co. for sale on March 2.14. Sold merchandise to customers who used American Express cards, $13,700. The cost of merchandise sold was $8,350.16. Sold merchandise on account to Targhee Co., $27,500, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was…