Integrity Co. just opened a branch in Baguio City this December 2021. Summary of transactions for the first month of operations follows: 1. Baguio Branch received P20,000 cash from home office to start its operations. 2. Home Office shipped merchandise to the Branch costing P100,000, of which 25% have not yet received by the Branch. 3. Branch purchases from other suppliers amounted to P89,250. 4. Branch sales for the month amounted to P245,000 5. Home Office debit memo for P3,500 representing the Branch's share on advertising expenses was recorded only by the Branch on the 3rd day of January 2022. 6. Branch operating expenses of P61,250 were paid by the Home Office. 7. Branch remitted P40,000 to the Home Office but the Home Office bookkeeper recorded it only in the month of January 2022. 8. The merchandise inventory on hand of the Branch is: From outsiders, P20,000 From Home Office, P30,000 What is the unadjusted balance of the Investment in Branch account, before Net income at December 31, 2021?
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Integrity Co. just opened a branch in Baguio City this December 2021. Summary of transactions for the first month of operations follows:
1. Baguio Branch received P20,000 cash from home office to start its operations.
2. Home Office shipped merchandise to the Branch costing P100,000, of which 25% have not yet received by
the Branch.
3. Branch purchases from other suppliers amounted to P89,250.
4. Branch sales for the month amounted to P245,000
5. Home Office debit memo for P3,500 representing the Branch's share on advertising expenses was recorded only by the Branch on the 3rd day of January 2022.
6. Branch operating expenses of P61,250 were paid by the Home Office.
7. Branch remitted P40,000 to the Home Office but the Home Office bookkeeper recorded it only in the month of January 2022.
8. The merchandise inventory on hand of the Branch is:
From outsiders, P20,000
From Home Office, P30,000
What is the unadjusted balance of the Investment in Branch account, before Net income at December 31, 2021?
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