At the end of 20XX, the following records were taken form the books of the home office and the branch.(Branch Books)Home Office12/01 Cash remitted to home office12/28 Cash remitted to home office12/28 Merchandise returned to homeoffice01/01 Balance12/04 Shipments to branch12/28 Expense Allocation12/28 Shipments to branch12/28 Supplies purchased for branch andshipped directly to branchBalance 166,40080,00030,00012,00001/01 Balance12/05 Shipments from Home Office12/28 Expenses from Home Office(Home Office Books)Investment in Branch52,40024,000Balance 103,20060,000 12/03 Cash received from branch120,000 12/28 Collection from branch customer8,00060,000120,00045,20080,00018,000Except for the error by the branch in recording its share of allocated expenses, all difference are timing differences.Required:1. Compute the correct balance of reciprocal accounts.2. Prepare the necessary entries to bring the reciprocal accounts into balance for a working paper used to prepare the homeoffice's combined financial statements.

Introduction: Reciprocal: Reciprocal account is an arrangement under the this one credit institution…

01/01 Balance 12/04 Shipments to branch 12/28 Expense Allocation 12/28 Shipments to branch 12/28 Supplies purchased for branch and shipped directly to branch Balance 166,400 60,000 120,000 52,400 24,000 8,000 12/03 Cash received from branch 12/28 Collection from branch customer 80,000 18,000 Except for the error by the branch in recording its share of allocated expenses, all difference are timing differences. Required: 1. Compute the correct balance of reciprocal accounts. 2. Prepare the necessary entries to bring the reciprocal accounts into balance for a working paper used to prepare the home office's combined financial statements.

01/01 Balance 12/04 Shipments to branch 12/28 Expense Allocation 12/28 Shipments to branch 12/28 Supplies purchased for branch and shipped directly to branch Balance 166,400 60,000 120,000 52,400 24,000 8,000 12/03 Cash received from branch 12/28 Collection from branch customer 80,000 18,000 Except for the error by the branch in recording its share of allocated expenses, all difference are timing differences. Required: 1. Compute the correct balance of reciprocal accounts. 2. Prepare the necessary entries to bring the reciprocal accounts into balance for a working paper used to prepare the home office's combined financial statements.

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter24: Recording International And Internet Sales

Section: Chapter Questions

Problem 1MP

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Transactions related to revenue and cash receipts completed by Sycamore Inc. during the month of March 20Y8 are as follows: Prepare a single-column revenue journal and a cash receipts journal to record these transactions. Use the following column headings for the cash receipts journal: Fees Earned Cr., Accounts Receivable Cr., and Cash Dr. Place a check mark () in the Post. Ref. column to indicate when the accounts receivable subsidiary ledger should be posted.
Transactions related to revenue and cash receipts completed by Sterling Engineering Services during the period June 230 are as follows: Instructions 1. Insert the following balances in the general ledger as of June 1: 2. Insert the following balances in the accounts receivable subsidiary ledger as of June 1: 3. Prepare a single-column revenue journal (p. 40) and a cash receipts journal (p. 36). Use the following column headings for the cash receipts journal: Fees Earned Cr., Accounts Receivable Cr., and Cash Dr. The Fees Earned column is used to record cash fees. Insert a check mark () in the Post. Ref. column when recording cash fees. 4. Using the two special journals and the two-column general journal (p. 1), journalize the transactions for June. Post to the accounts receivable subsidiary ledger and insert the balances at the points indicated in the narrative of transactions. Determine the balance in the customers account before recording a cash receipt. 5. Total each of the columns of the special journals and post the individual entries and totals to the general ledger. Insert account balances after the last posting. 6. Determine that the sum of the customer accounts agrees with the accounts receivable controlling account in the general ledger. 7. Why would an automated system omit postings to a control account as performed in step 5 for Accounts Receivable?
Included in the accounting records of the home office and Mad Branch, respectively of Haler Company were the following ledger accounts for the month of January. Investment in Mad Branch (In home office accounting records) Credit Date Explanation Jan 1 Balance Debit Balance P117,600 Dr 129,600 124,800 122,400 132,000 Shipment of merchandise Receipt of cash Collection of branch accounts receivable P12,000 9 21 27 31 P4,800 2,400 Shipment of merchandise 9,600 Home Office Current (In Mad Branch accounting records) Credit Explanation Date Jan 1 Balance 10 19 28 Debit Balance P117,600 Cr 129,600 124,800 121,200 116,700 115,200 Receipt of merchandise Remittance of cash P12,000 P4,800 3,600 4,500 1,500 Acquisition of furniture Return of excess merchandise 30 31 Remittance of cash REQUIREMENTS: 1. Compute for the reconciled amounts of the reciprocal accounts 2. Prepare reconciling entries in the books of Haler Company and Mad Branch
a. The home office has billed the branch the amount of P37,500 for the merchandise, which was in transit on December 31. b. A home office accounts receivable for P10,500 was collected by the branch. Said collection was not reported to the home office by the branch. c. Supplies of P4,500 was returned by the branch to the home office but the home office has not yet reflected in its records the receipt of the supplies. d. The branch made profit of P10,100o for the month of December but the home office erroneously recorded it as P11,180. e. The branch has not received the cash in the amount of P25,000 sent by home office on December 31. This was charged to General Expense account.
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S1: The “Shipment to Branch” account is added to the home office’s purchase account in determining home office cost of goods sold. S2: When performing the end-of-the-period reconciliation between the Home Office account on the branch’s books and the Branch Account on the home office’s books, shipments in transit from the branch back to the home office will be treated as an addition to the home office’s Branch Account. Both statements are Only S2 is Only S1 is Both statements are 2. S1: Unrealized profits from transactions between a home office and its branch are added from Beginning inventory and deducted from ending inventory of the branch in preparing combined financial statements for the enterprise. S2: The balance of the Allowance for Overvaluation of Inventories: Branch ledger account is added from the balance of the Investment in Branch account in the separate balance sheet of the home office. Both statements are Only S2 is Both statements are Only S1 is 3. What is the most…
On September 1, the balance of the Accounts Receivable control account in the general ledger of Ivanhoe Company was $10,790. The customers' subsidiary ledger contained account balances as follows: Hurley $1,320, Andino $2,710, Fowler $2,020, and Sogard $4,740. At the end of September, the various journals contained the following information. Sales journal: Cash receipts journal: General journal: Sales to Sogard $840, to Hurley $1,130, to Giambi $1,390, and to Fowler $1,210. Cash received from Fowler $1,370, from Sogard $2,300, from Giambi $280, from Andino $1,770, and from Hurley $1,100. An allowance is granted to Sogard $320. (a) (b) Post the various journals. Post the items as individual items or as totals, whichever would be the appropriate procedure. (No sales discounts given.) Accounts Receivable Date Explanation Ref. Sept. 1 Balance Debit Credit Balance V 10,790 S CR
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Statement 1: The “Shipment to Branch” account is added to the home office’s purchase account in determining home office cost of goods sold. Statement 2: When performing the end-of-the-period reconciliation between the Home Office account on the branch’s books and the Branch Account on the home office’s books, shipments in transit from the branch back to the home office will be treated as an addition to the home office’s Branch Account. Statement 3: The balance of the Allowance for overvaluation of inventories: Branch ledger account is added from the balance of the Investment in Branch account in the separate balance sheet of the home office. Statement 4: If branch managers are responsible for ordering merchandise from the home office any excess freight costs incurred as a result of inter-branch shipments are absorbed by the appropriate branch rather than by the home office. Statement 5: The acquisition-related costs in a business combination to be expensed immediately include cost of…
After each amount is posted from the cash receipts Journal to the general ledger, O the Journal letter CR and page number are entered in the PR column in the customer accounts in the ledger O the Journal letter R and page number are entered in the PR column in for the Other Accounts Cr. column. O the letter x is entered in the PR column for Cash Dr., Cost of Goods Sold Dr./Inventory Cr. columns. the letter GL is entered under the total of the Other Accounts Cr. column.