ADFINA 1 - Home Office - Quiz - 2016N
ADVANCED FINANCIAL ACCOUNTING ONE HOME, BRANCH, AGENCY ACCOUNTING QUIZ
1. Duri During ng 2013, 2013, the home home ofce ofce ships ships inve invent ntor ory y to its its branch branch at a mark-up o 120% above cost. The reciproca account in the income statement o the home ofce amounte! to "23#,$00. The baance o the contra branch current account reports a baance o "3#$,000 beore a!ustment. The beginning inventory o the branch current rom rom the the home home ofce ofce at cost cost is "3 "3&0 &0,0 ,000 00 an! an! rom rom outs outsi! i!er ers, s, "'3,000. The branch purchase! goo!s rom outsi!ers !uring the year amounting to "12$,200. The en!ing inventory o the branch as repor eporte te! ! in the the combi combine ne! ! stat statem emen entt o (nanc (nancia ia posi positi tion on is "3)$ "3 )$,0 ,000 00.. The The bran branch ch inco income me as repor eporte te! ! in the the comb combin ine! e! (nanc (nancia ia stat statem emen entt an! as repor eporte te! ! in the the branc branch* h*s s book books s are are "201,12$ "201,12$ an! 120,#$0, 120,#$0, respecti respectivey vey. How much is the cost of goods sold to be reported in the branch’s income statement for the year ended December 31, 2013? 2. +athay +athay ui!e ui!ers rs nc. opera operates tes a branch branch in ueva ueva /cia. /cia. n uy 31, 31, 201$, the ranch +urrent account ha! a baance o ")20,100. n the proce process ss o reconc reconcii iing ng the recipr eciproca oca curre current nt accoun accounts, ts, the items that ere note! home ofce ha! bie! the branch "1,2$0,000 or The merchan!ise shipment hich ere sti in transit as o uy 31 4 ho home me of ofce ce cu cust stom omer er er errron oneo eous usy y pa pai! i! hi his s ac acco coun untt o "12$,000 to the branch on uy 31 The branch has aie! to recogni5e its "200,000 share in a!vertising e6pense pai! by the home ofce recor!e! !e! branch net income o "707,000 but The home ofce recor the branch reporte! the net income at "770,000 !uring the (sca perio! then en!e!. 4ssuming that a other transactions reate! to the home ofce an! its branch are correcty recor!e!, how much is the adjusted balance of the reciprocal current accounts as of uly 31, 201!?
3" 4 home ofce ships merchan!ise to the branch at 30% above cost. The aoance or overvauation at the beginning o the year as " 2),000 an! at the en! o the year, the baance beore a!ustment as "2&),000, an! ater the a!ustment, the baance is "2#,000. 1#. #he cost of goods a$ailable for sale on the boo%s of the branch? &" n ovember 1, 2010 8am 9aes +ompany estabishe! a saes agen agency cy in :aka :akati ti.. The The home home ofce ofce sent sent mer merchan! chan!is ise e samp sampes es cost costiing "20 20,0 ,000 00 an! an! a cash ash orki orking ng un! un! o "1 "10, 0,00 000 0 to be main mainta tain ine! e! un!e un!err the the impr impres estt sy syst stem em.. Duri During ng the the mont month h o ovember, the saes agency transmitte! to the home ofce saes or!e or!ers rs.. Thes These e er ere bi bie! e! at "1 "1)0 )0,0 ,000 00 o hic hich h ") ")0, 0,00 000 0 er ere coecte!. The saes agency pai! e6penses o " 1&,$00 ;incu!ing rent or 2 months o "7,000< an! as reimburse! by the home Page 1 ofsaes 2 ofce. ofce. n Decemb December er 31 31,, 20 2010, 10, the agency agency sampe sampes s ere ere vaue! at " 12,000. t as estimate! that the gross pro(t on goo!s shippe! to ( agency saes or!ers average! )0% o cost. 1$. #he net income 'loss( of the agency for )o$" )o$" *s? 2nd Semester Admission Year 2016 - 2017 K.T. Tegio
$. 8occo +orporation has to branches in hich merchan!ise is transerre! at cost pus 20% pus reight charges. n ovember 30, 2010, 8occo shippe! merchan!ise that cost "1$0,000 to its 4ntipoo branch, an! the "),000 shipping charges ere pai! by 8occo. n December 1$, 2010, the Taytay branch encountere! an inventory shortage, an! the 4ntipoo branch shippe! the merchan!ise to the Taytay branch at a eight cost o "3,200 pai! by Taytay. 9hipping charges rom the home ofce to the Taytay branch ou! have been "&,000. 1&. +s a result of the interbranch in$entory transfer, the total amount credited to the Home -.ce account by the #aytay branch is?
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2nd Semester Admission Year 2016 - 2017 K.T. Tegio