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    ADFINA 1 - Home Office - Quiz - 2016N

    Uploaded by

    Kenneth Bryan Tegerero Tegio
    This document contains 5 questions related to accounting for home office and branch transactions. Question 1 asks how much the cost of goods sold should be reported in the branch's income statement. Question 2 asks for the adjusted balance of reciprocal current accounts between a home office and branch. Question 3 asks for the cost of goods available for sale on the books of the branch. Question 4 asks for the net income of an agency for November. Question 5 asks for the total amount credited to the Home Office account by the Taytay branch as a result of an inter-branch inventory transfer.

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    ADFINA 1 - Home Office - Quiz - 2016N

    Uploaded by

    Kenneth Bryan Tegerero Tegio
    191 views2 pages
    This document contains 5 questions related to accounting for home office and branch transactions. Question 1 asks how much the cost of goods sold should be reported in the branch's income statement. Question 2 asks for the adjusted balance of reciprocal current accounts between a home office and branch. Question 3 asks for the cost of goods available for sale on the books of the branch. Question 4 asks for the net income of an agency for November. Question 5 asks for the total amount credited to the Home Office account by the Taytay branch as a result of an inter-branch inventory transfer.

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    This document contains 5 questions related to accounting for home office and branch transactions. Question 1 asks how much the cost of goods sold should be reported in the branch's income statement. Question 2 asks for the adjusted balance of reciprocal current accounts between a home office and branch. Question 3 asks for the cost of goods available for sale on the books of the branch. Question 4 asks for the net income of an agency for November. Question 5 asks for the total amount credited to the Home Office account by the Taytay branch as a result of an inter-branch inventory transfer.

    Copyright:

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

    ADFINA 1 - Home Office - Quiz - 2016N

    Uploaded by

    Kenneth Bryan Tegerero Tegio
    This document contains 5 questions related to accounting for home office and branch transactions. Question 1 asks how much the cost of goods sold should be reported in the branch's income statement. Question 2 asks for the adjusted balance of reciprocal current accounts between a home office and branch. Question 3 asks for the cost of goods available for sale on the books of the branch. Question 4 asks for the net income of an agency for November. Question 5 asks for the total amount credited to the Home Office account by the Taytay branch as a result of an inter-branch inventory transfer.

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

    ADVANCED FINANCIAL ACCOUNTING ONE

    HOME, BRANCH, AGENCY ACCOUNTING


    QUIZ

    1. During 2013, the home office ships inventory to its branch at a


    mark-up of 120% above cost. The reciprocal account in the income
    statement of the home office amounted to P237,500. The balance
    of the contra branch current account reports a balance of P375,000
    before adjustment. The beginning inventory of the branch current
    from the home office at cost is P360,000 and from outsiders,
    P93,000. The branch purchased goods from outsiders during the
    year amounting to P125,200. The ending inventory of the branch
    as reported in the combined statement of financial position is
    P345,000. The branch income as reported in the combined
    financial statement and as reported in the branchs books are
    P201,125 and 120,750, respectively. How much is the cost of
    goods sold to be reported in the branchs income
    statement for the year ended December 31, 2013?

    2. Cathay Builders Inc. operates a branch in Nueva Ecija. On July 31,


    2015, the Branch Current account had a balance of P420,100. In
    the process of reconciling the reciprocal current accounts, the
    items that were noted:
    The home office had billed the branch P1,250,000 for
    merchandise shipment which were still in transit as of July 31
    A home office customer erroneously paid his account of
    P125,000 to the branch on July 31
    The branch has failed to recognize its P200,000 share in
    advertising expense paid by the home office
    The home office recorded branch net income of P808,000 but
    the branch reported the net income at P880,000 during the
    fiscal period then ended.

    Assuming that all other transactions related to the home office and its
    branch are correctly recorded, how much is the adjusted balance
    of the reciprocal current accounts as of July 31, 2015?

    3. A home office ships merchandise to the branch at 30% above cost.


    The allowance for overvaluation at the beginning of the year was P
    24,000 and at the end of the year, the balance before adjustment
    was P264,000, and after the adjustment, the balance is P27,000.
    17. The cost of goods available for sale on the books of the
    branch?

    4. On November 1, 2010 Ram Sales Company established a sales


    agency in Makati. The home office sent merchandise samples
    costing P20,000 and a cash working fund of P10,000 to be
    maintained under the imprest system. During the month of
    November, the sales agency transmitted to the home office sales
    orders. These were billed at P140,000 of which P40,000 were
    collected. The sales agency paid expenses of P 16,500 (including
    rent for 2 months of P8,000) and was reimbursed by the home
    office. On December 31, 2010, Pagethe
    1 ofsales
    2 agency samples were
    valued at P 12,000. It was estimated that the gross profit on goods
    shipped to fill agency sales orders averaged 40% of cost. 15. The
    net income (loss) of the agency for Nov. Is?

    2nd Semester Admission Year 2016 - 2017


    K.T. Tegio
    5. Rocco Corporation has two branches in which merchandise is
    transferred at cost plus 20% plus freight charges. On November 30,
    2010, Rocco shipped merchandise that cost P150,000 to its
    Antipolo branch, and the P4,000 shipping charges were paid by
    Rocco. On December 15, 2010, the Taytay branch encountered an
    inventory shortage, and the Antipolo branch shipped the
    merchandise to the Taytay branch at a feight cost of P3,200 paid by
    Taytay. Shipping charges from the home office to the Taytay branch
    would have been P6,000. 16. As a result of the inter-branch
    inventory transfer, the total amount credited to the Home
    Office account by the Taytay branch is?

    Nothing follows

    Page 2 of 2

    2nd Semester Admission Year 2016 - 2017


    K.T. Tegio

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