chapter 13 worksheet
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Solman AcctgTRANSCRIPT
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Problem V
SPENCER CO.
Work Sheet for Combined Statements for Home Office and Branch
December 31, 20x5
Combined Combined
Adjusted Trial BalanceAdjustments Income Balance
Home and Eliminations Statement Sheet
Office Branch Dr. Cr. Dr. Cr. Dr. Cr.
Debits
Cash .. 10,350 2,650 .. .. .. .. 13,100 .. Cash in Transit . 1,500 .. .. .. .. .. 1,500 .. Accounts Receivable . 26,200 12,850 .. .. .. .. 39,050 .. Merchandise Inv. Dec 1 . 31,500 14,400 (c) 2,000 43,900 .. .. .. .. Store Supplies . 380 300 .. .. .. .. 580 .. Prepaid Expenses . 350 120 .. .. .. .. 470 .. Furniture & Fixtures 8,500 3,600 .. .. .. .. 12,700 .. Branch 32,260 (a) .. 32,260 .. .. .. .. Retained Earnings . 6,850 .. .. .. .. 6,850 .. Purchases . 27,600 4,100 .. .. .. .. .. .. Shipments from Home Office 10,200 (b) 10,200 .. .. .. .. .. Advertising Expense . 2,850 2,800 .. 5,650 .. .. .. .. Salaries and Commissions Expense. 4,250 2,350 .. 6,600 .. .. .. .. Store Supplies Expense . 560 280 .. 840 .. .. .. .. Miscellaneous Selling Expense .. 1,850 1,050 .. 2,900 .. .. .. .. Rent Expense .. 2,700 1,500 .. 4,200 .. .. .. .. Depreciation Expense F&F .. 85 36 .. 121 .. .. .. .. Miscellaneous General Expense .. 2,510 95 .. 3,415 .. .. .. .. 160,295 57,141 .. .. .. .. .. .. Merchandise Inv, Dec 31 24,900 14,600 .. (d) 1,950 .. .. 36,850 ..
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Problem V continued
Credits
Accumulated Depreciation Furniture
And Fixtures 2,585 576 .. .. .. .. .. 3,161
Unrealized Intercompany Inventory.. .. (b) 1,700 .. .. .. .. .. Profit . 3,700 .. (c) 2,000 .. .. .. .. .. Accounts Payable 36,400 4,200 .. .. .. .. .. 39,000 Accrued Expenses ... 260 105 .. .. .. .. .. 365 Home Office .. .. 32,250 (a) 32,260 .. .. .. .. .. Capital Stock 65,000 .. .. .. .. .. .. 65,000 Sales 44,850 20,000 .. .. .. 64,850 .. .. Shipments to Branch ... 8,500 .. (b) 8,500 .. .. .. .. .. P160,295 57,141 .. .. .. .. .. .. Merchandise Inv, Dec 31 .. 24,200 14,600 (d) 1,950 .. .. 36,850 .. .. 46,410 46,410 99,326 101,700 110,500 108,126
Net Income to Balance . 2,374 .. .. 2,374 101,700 101,700 .. .. .. .. 110,500 110,500
Explanation of adjustments and eliminations:
(a) To eliminate reciprocal accounts, Home Office and Branch.
(b) To eliminate shipments to Branch and Shipments to Home Office. Difference between the two balances is debited to Unrealized Intercompany Inventory profit
(20% of P8,500, or P1,700).
(c) To eliminate unrealized profit in beginning inventory balances : P3,700 balance per trial balance, less P1,700 adjustment per entry (b) or P2,000
(d) To reduce ending inventory cost: Branch inventory form home office at billed price . P11,700
Branch inventory from home office at cost, P11,700/1.20 9,750
Inventory reduction .. P 1,950
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Problem VI
Accounts
Trial Balance
Alignments and Branch Income Home Office Balance Sheet
December 31, 20x4
Eliminations Statement Income Statement
Home
Office Branch
Dr.
Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Debits
Cash 15,000 2,000 (f) 10,000
(g) 3,000
30,000
Accounts Receivable 20,000 17,000
37,000
Inventory, December 31,20x4 30,000 8,000 (a) 10,000 (d) 3,600
44,400
Plant Assets (net) 150,000
150,000
Branch 44,000
(f) 10,000
(h) 34,000
Cost of goods sold - Home
office 220,000
(b) 84,000
136,000
Expenses - Home Office 70,000
70,000
Cost of goods sold - Branch
93,000 (d) 3,600 (b) 21,000 74,400
(c) 1,200
Expenses - Branch _______ __41000 (e) 12,000
53,000
549,000 161,000
Credits
Accounts Payable 23,000
23,000
Mortgage Payable 50,000
50,000
Capital Stock 100,000
100,000
Retained Earnings - January 1,
20x4 26,000
(c) 1,200
24,800
Sales - Home Office 350,000
(b) 105,000
245,000
Sales - Branch
150,000
150,000
Accrued Expenses
2,000
2,000
Home Office
9,000 (h) 34,000 (a) 10,000
(e) 12,000
________
_______
_______ (g) ___3000
_______
_______
_______
_______
_______
_______
549,000 161,000
178,800
178,800 127,400 150,000 206,000 245,000 261,400 199,800
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Problem VI continued
Branch Net Income
22,600
22,600
Home Office Net Income
_______
_______ __39,000
_______
_______ __39,000
150,000 150,000 245,000 245,000 261,400 261,400
Explanation of adjustments and eliminations:
(a) To record merchandise in transit from home office, determined as follows:
Billings from home office plus beginning inventory amount available for sale P105,000 + P6,000 .P111,000 Less cost of goods sold and ending inventory per branch records: P93,000 + P8,000 . 101,000 Balance representing shipments from home office not yet recorded by the branch.P 10,000
(b) To eliminate shipments of merchandise to branch recorded as sales. Reduction in home office cost of goods sold: P105,000 1.25 or P84,000.
(c) To adjust branch cost of goods sold for unrealized profit on beginning inventory: P6,000 (P6,000 1.25), or P1,200.
(d) ) To adjust branch cost of goods sold for unrealized profit on ending inventory: P18,000 (P18,000 1.25) or P3,600.
(e) To record branch expenses paid by home office.
(f) To record cash deposited by branch on December 29 and 30 for account of the home office and not recorded by home office in 20x4.
(g) To record cash in transit from home office.
(h) To eliminate inter office accounts.