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    Questions 11 and 12 Are Based On The Following Information

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    Bella Ayab
    The document provides information about the interoffice accounts of Yul Trading Corp.'s home office and Talisay Branch. At the end of 2012, the Talisay Branch account showed a debit balance of P225,770 in the home office books. Upon reconciling the accounts, several discrepancies were found totaling P2,715, resulting in an adjusted debit balance of P228,485. The document also provides trial balance information for the home office and branch of PTT Corporation. It indicates an unrealized profit of P7,200 in the branch inventory and asks what the realized profit and net income of the branch are. Finally, the document discusses reconciling items between the home office and

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    Questions 11 and 12 Are Based On The Following Information

    Uploaded by

    Bella Ayab
    96 views2 pages
    The document provides information about the interoffice accounts of Yul Trading Corp.'s home office and Talisay Branch. At the end of 2012, the Talisay Branch account showed a debit balance of P225,770 in the home office books. Upon reconciling the accounts, several discrepancies were found totaling P2,715, resulting in an adjusted debit balance of P228,485. The document also provides trial balance information for the home office and branch of PTT Corporation. It indicates an unrealized profit of P7,200 in the branch inventory and asks what the realized profit and net income of the branch are. Finally, the document discusses reconciling items between the home office and

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    accounting of branch 2

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    The document provides information about the interoffice accounts of Yul Trading Corp.'s home office and Talisay Branch. At the end of 2012, the Talisay Branch account showed a debit balance of P225,770 in the home office books. Upon reconciling the accounts, several discrepancies were found totaling P2,715, resulting in an adjusted debit balance of P228,485. The document also provides trial balance information for the home office and branch of PTT Corporation. It indicates an unrealized profit of P7,200 in the branch inventory and asks what the realized profit and net income of the branch are. Finally, the document discusses reconciling items between the home office and

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    96 views2 pages

    Questions 11 and 12 Are Based On The Following Information

    Uploaded by

    Bella Ayab
    The document provides information about the interoffice accounts of Yul Trading Corp.'s home office and Talisay Branch. At the end of 2012, the Talisay Branch account showed a debit balance of P225,770 in the home office books. Upon reconciling the accounts, several discrepancies were found totaling P2,715, resulting in an adjusted debit balance of P228,485. The document also provides trial balance information for the home office and branch of PTT Corporation. It indicates an unrealized profit of P7,200 in the branch inventory and asks what the realized profit and net income of the branch are. Finally, the document discusses reconciling items between the home office and

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Questions 11 and 12 are based on the following information.

    Yul Trading Corp. operates a branch in Talisay City. At the close of business on December 31, 2012, Talisay Branch
    account in the home office books showed a debit balance of P225,770. The interoffice accounts were in agreement at the
    beginning of the year. For purposes of reconciling the interoffice accounts, the following facts were ascertained:
    1. An office equipment costing the home office P3,5000 was picked up by the branch as P350.
    2. Insurance premium of P675 charged by the home office was taken up twice by the branch.
    3. Freight charges on merchandise made by the home office for P1,125 were recorded in the branch book as
    P1,215.
    4. Home office credit memo representing a discount on merchandise for P800 was not recorded by the branch.
    5. The branch failed to take up a P700 debt memo from the home office representing the share of the branch in the
    advertising.
    6. The home office inadvertently recorded a remittance for P3,000 from the Cebu branch as a remittance from its
    Talisay branch.

    1. What is the balance of the Home Office account before adjustment as of December 31, 2012?
    a. P225,000 c. P228,485
    b. 225,770 d. 226,485

    2. What is the adjusted balance of the Home Office account as of December 31, 2012?
    a. P225,000 c. P225,770
    b. 226,485 d. 228,770

    Questions 13 and 14 are based on the following information.


    PTT Corporation retails merchandise through its home office store and through a branch store in a distant city. Separate
    ledgers are maintained by the home office and the branch. The branch store purchases merchandise from the home
    office (at 120% of home office cost), as well as from outside supplies. Selected information from the December 31, 2012
    trial balances of the home office and branch is as follows:
    Home Office Branch
    Sales P120,000 P60,000
    Shipments to branch 16,000 ----
    Purchases 70,000 11,000
    Inventory, January 1, 2012 40,000 30,000
    Shipments from home office ----- 19,200
    Expenses 28,000 12,000
    Unrealized profit in branch inventory 7,200 -----

    Additional information:
     The entire difference between the shipment accounts is due to the practice of billing the branch at cost plus 20%.
     The December 31, 2012 inventories are P40,000 and P20,000 for the home office and the branch, respectively.
    (The branch purchased 16% of its ending inventory from outside supplies.)
     Branch beginning and ending inventories include merchandise acquired from home office is inventoried at 120%
    of home office cost.

    3. What is the realized profit in branch inventory?


    a. P4,000 c. P2,800
    b. 7,200 d. 4,400

    4. What is the net income of the branch as far the home office is concern?
    a. P50,200 c. P10,600
    b. 15,000 d. 12,200

    Questions 15 and 16 are based on the following information.


    Kulas Corporation has one branch operation located 500 miles away from the home office. The branch office sales
    merchandise which is shipped to it from the home office. The merchandise is transferred at cost but the branch pays
    reasonable freight charges. The branch office makes sales and incurs and pays operating expenses. At the end of the
    current accounting period the true adjusted balance for the home office account on the branch’s books and the branch
    office account on the home office’s books is P500,000.

    The following items may or may not be reconciling items. The current year is 2012.
    1) The home office has shipped merchandise to the branch office which cost P10,000 and which incurs P500
    freight charges paid by the home office but charged to the branch. This merchandise is received by the
    branch on January 5, 2012.
    2) The branch has transmitted P17,000 in cash back to the home office as a partial payment on such purchased
    merchandise. This cash is received by the home office on January 6, 2012.
    3) The branch office returns some defective merchandise to the home office. The cost of the returned
    merchandise is P750. The branch office pays P25 of freight costs which will be charged back to the home
    office.

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    4) On December 1, 2012, the home office sends a check for P25,000 to replenish the branch’s charged back to
    the home office.
    5) The branch pays an advertising expense of P800 that should have been paid by the home office since it
    applied to advertising fees incurred by the home office of its own benefit.
    6) The home office allocated P12,000 of general and administrative expenses to the branch. The branch had not
    entered the allocation as of the end of the year.
    7) The home office pays insurance premiums on the branch store. The amount paid by the home office is
    P1,000 but the branch erroneously records it as P776.00

    5. What is the unadjusted balance of the Home Office account?


    a. P481,425 c. P500,000
    b. 452,276 d. 518,575

    6. What is the unadjusted balance of the Branch account?


    a. P433,701 c. P518,575
    b. 500,000 d. 452,276

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