Jerah Y. Torrejos
HOME OFFICE BOOKS
BRANCH OFFICE BOOKS
1.
Investment in Branch
35,000
Cash
35,000
To record the transfer of Cash to the Branch.
Cash
2.
Investment in Branch
Shipment from Home
Office
Home Office
75,000
Shipment to
75,000
Branch
To record the transfer of merchandise to the
Branch at cost.
3.
Merchandise Display
15,000
Equipment
Investment in
15,000
Branch
To record the merchandise display equipment
purchase of the Branch.
35,000
Home Office
35,000
To record the transfer of cash from Home
Office.
75,000
75,000
To record the transfer of merchandise from
the Home Office at cost.
Home Office
15,000
Cash
15,000
To record the merchandise display
equipment purchased.
4.
-
Purchases
53,750
Accounts
53,750
Payable
To record the purchase of inventory on
account.
5.
-
Cash
43,750
Accounts Receivable
106,250
Sales
150,000
To record the cash and credit sales.
6.
-
Cash
7.
-
Accounts Payable
35,000
Cash
35,000
To record the payment to outside creditors.
8.
-
Selling Expense
General
and
Admirative Expense
Cash
55,000
Accounts
55,000
Receivable
To record the collection of Accounts
Receivable.
18,750
15,000
33,750
To record the expense paid.
9.
Investment in Branch
2,500
Insurance
2,500
Expense
To record the insurance expense allocated by
to the Branch.
Insurance Expense
Home Office
2,500
2,500
To record the insurance expense allocated
by the Home Office.
10.
Investment in Branch
1,250
Selling Expense
1,250
To record the allocated depreciation expense
to the Branch.
Selling Expense
1,250
Home Office
1,250
To record the allocated expense from the
Home Office.
11.
Cash
Home Office
Cash
12,500
Investment in
12,500
Branch
To record the remittance from the Branch.
12
Investment in Branch
Branch Income
To record Branch Income.
25,000
25,000
150,000
(87,500 )
62,500
(20,000)
(15,000)
(2,500)
25,000
12,500
To record the remittance to Home Office.
Cost of Goods Sold
Inventory
87,500
Sales
150,000
87,500
Income
Summary
To close Sales.
Inventory 12/31/09
Shipment from
Home Office
Purchases
To Close Cost of Sales.
Sales
Cost of Goods Sold
Gross Profit
Operating Expenses:
Selling Exp.
G, and Admin
Insurance Exp.
Net Income
12,500
Shipment to Branch
Purchases
Ending Inventory
COGS
150,000
41,250
31,250
10,000
75,000
53,750
128,750
(41,250)
87,500