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Advance Accounting Assignment

The document provides trial balances for the home office and branch of Spencer Co. as of December 31, 20x4. It lists adjustments that need to be made including intercompany transactions and inventory amounts. It requires preparing individual income statements for the home office and branch, a combined worksheet, combined income statement and balance sheet, and closing entries for both the home office and branch.

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Dalia Elaraby
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148 views3 pages

Advance Accounting Assignment

The document provides trial balances for the home office and branch of Spencer Co. as of December 31, 20x4. It lists adjustments that need to be made including intercompany transactions and inventory amounts. It requires preparing individual income statements for the home office and branch, a combined worksheet, combined income statement and balance sheet, and closing entries for both the home office and branch.

Uploaded by

Dalia Elaraby
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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lOMoARcPSD|4600191

advance accounting assignment

Financial Accounting 1 (Ateneo de Manila University)

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V – Adjustments, Closing, Worksheet, Separate and Combined Statements


On December 31, 20x4, the end of a monthly period, the following trial balances were
prepared for the Spencer Co. and its branch. Merchandise was billed to the branch by the
home office at 120% of cost.

Home Office Branch


Cash . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . P P 2,650
10,350
Accounts Receivable . .. .. .. .. .. .. .. .. .. . 26,200
12,850
Merchandise Inventory-(December 1) . .. . 31,500
14,400
Furniture and Fixtures . .. .. .. .. .. .. .. .. .. . 8,500
3,600
Accumulated Depreciation- Furniture
and Fixtures . .. .. .. .. .. .. .. .. .. .. .. .. . 2,500 540
Unrealized Intercompany Inventory Profit . . 3,700
Store Supplies . .. .. .. .. .. .. .. .. .. .. .. .. . 940 580
Branch . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 33,760
Account Payable . .. .. .. .. .. .. .. .. .. .. . 35,400 4,200
Home office . .. .. .. .. .. .. .. .. .. .. .. .. . 32,040
Capital Stock . .. .. .. .. .. .. .. .. .. .. .. .. .. . 65,000
Retained Earnings . .. .. .. .. .. .. .. .. .. .. . 6,850
Sales . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 44,850 20,000
Shipment to Branch . .. .. .. .. .. .. .. .. .. .. . 8,500
Purchases . .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 27,600 4,100
Shipment from Home Office . .. .. .. .. .. .. . 10,200
Advertising Expense . .. .. .. .. .. .. .. .. .. . 2,850 2,800
Salaries and Commission Expense . .. .. .. . 4,250 2,350
Miscellaneous Selling Expense . .. .. .. .. .. . 1,850 1,050
Rent Expense . .. .. .. .. .. .. .. .. .. .. .. .. . 2,700 1,500
Miscellaneous General Expense(includes
taxes and insurance). .. .. .. .. .. .. .. .. . ____2,60 ________ ____700 _______
0
P P P 56,780 P
159,950 159,950 56,780
The following data were available on December 31:
 Merchandise inventories: home office, cost P24,200; branch, P14,600, composed of
merchandise received from the home office (at billed price),P11,700, and
merchandise purchased from outsiders (at cost), P2,900.
 Store supplies on hand: home office, P380; branch, P300
 Prepaid expenses (credit Miscellaneous General Expense): home office,P350; branch,
P120
 Accrued expenses (debit Miscellaneous General Expense): home office, P260; branch
P105
 Depreciation of furniture and fixtures is recorded at 1% a month.
 A cash remittance of P 1,500 had been recorded on the branch books, but the cash
had not yet been received by the home office and no entry has been made.
 The home office had charged the branch with the following expenses that have not
yet been recorded by the branch: taxes and insurance. P220.
Required:
1. Prepare individual statements for the branch and the home office for December,
20x4.
2. Prepare a worksheet for combined statements.
3. Prepare combined statements for the branch and the home office.
4. Prepare the entries to adjust and close the books of (a) the branch and (b) the home
office.

Downloaded by Dalia Elaraby ([email protected])


lOMoARcPSD|4600191

Downloaded by Dalia Elaraby ([email protected])

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