Determine the true net income of the branch.
Q: The following information is made available by Purple Farms in relating to its dairy livestock…
A: Cattle, pigs, donkeys, chickens, sheep, as well as other animals, that have been grown and reared by…
Q: X, Y and Z of XYZ Partnership have beginning capital balances of P500,000, P400,000, and P300,000…
A: Partnership Firm A partnership is a form of business where two or more people share ownership, as…
Q: Forman of a construction company is responsible for a construction crew comprised of many unskilled…
A: Segregation of duties is key internal control to prevent frauds. According to principle of…
Q: A) Can the government tax its own agencies or instrumentalities? Explain.
A: Government tax refers to the tax amount which is a mandatory fee or the financial charge that is…
Q: The ledger of Kingbird Rental Agency on March 31 of the current year includes the following selected…
A: Adjusting entry was prepared at the end of the accounting. Adjusting entries are helpful for…
Q: S Corporation, a 75% owned subsidiary, of P Corporation, sells inventory items to its parent company…
A: Subsidiary revenues include any earnings, receivables, receipts, revenues, cash, profits, fees for…
Q: On August 1, 2022, a firm prepaid $53,520 for 2 years' rent of an office building. On March 1, 2023,…
A: Ans. $ 35,910
Q: B) Can the government revoke the real property and income tax exemptions enjoyed by non-stock,…
A: Answer:- Non-stock, non-profit educational institutions and religious organization:- A Non-stock,…
Q: How is a business's payment of an open account entered in the accounting records? O A. Cash is…
A:
Q: The Shoe Factory produces two types of shoes: Walking and Running. The following budgeted…
A: Overheads means all indirect costs being incurred in business. Under traditional costing method,…
Q: Capital balances in the WXY partnership are W, Capital P 60,000; X Capital P 50,000 and Y Capital…
A: Capital Balance of W P60,000 Capital Balance of X P50,000 Capital Balance of Y P40,000 Amount…
Q: Qualified accountants have superior knowledge of tax and financial reporting What sort of power do…
A:
Q: Questions 2 and 3 are based on the following: Several years ago, Roel and Jek formed RJ Partnership.…
A: As per the given information: Salary to each partner - P10,000Interest on beginning-of-the-year -…
Q: During 2020, Bramble Furniture Limited purchased a railway carload of wicker chairs. The…
A:
Q: Abel, Ben, and Carol form New General Partnership at the beginning of the current year. Abel and Ben…
A: Calculation of net partnership income for the year end: Particulars Amount Sales Revenue…
Q: In recording adjusting entries, Reagan Financial Advisors failed to record the adjusting entries for…
A: Adjusting entries: These are basically the journal entries that are recorded or accounted by the…
Q: On June 1, 2015, DAVE and MAR are combining their separate business to form a partnership. Cash and…
A: Solution Partnership is an agreement between two or more persons with the aim to share profit or…
Q: X Company collected P12350 in interest during 2019 X showed P1,850 in interest on its December 31,…
A: Accrual Basis of Accounting: A technique of accounting known as accrual accounting involves…
Q: The plant manager of Integrity Products Co. gathered production statistics for October as follows:…
A: The equivalent units are calculated on the basis of percentage of the work completed during the…
Q: five years? End of Year 1 2 3 Cash Flow In $ $ $ Cash Flow Out $ 300,000 $ 400,000 $ - 490,000…
A: The question is based on the concept of Cost Accounting. Net cash flow is the difference between the…
Q: For each unit of computer sold, Blue Company sells a service contract. The contract provides that…
A: As per IFRS 115 Revenue from contracts with customers, Revenue is to be recognized over a period of…
Q: Consider the following liabilities of Future Brands, Inc., at December 31, 2021, the company's…
A: Q1. The note is classified as Long-term liabilities as the same is payable after12 months though…
Q: Additional information for adjusting entries: 1. On July 31, the company had performed $820 of…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: In addition to cash contributions to charity, Dean decided to donate shares of stock and a portrait…
A: We use Fair market value (FMV)to calculate deduction : Maximum deduction can avail on cash that…
Q: The annual amount of tax deductible contributions to qualified retirement plans are the same as the…
A: The retirement plan refers to an investment plan or saving plan for post-retirement days. In the…
Q: The unadjusted trial balance of X Company on December 31, 2021 showed the Accounts Receivable with a…
A: Bad debts are those kinds of customers that become uncollectible. These are charged in the income…
Q: In 2021, XYZ Corporation, acquired 3,000 shares of its P20 par value ordinary share capital at P72…
A: Treasury stocks are reacquired shares by the company. These treasury shares can be the issued in…
Q: For each unit of computer sold, Blue Company sells a service contract. The contract provides that…
A: Unearned Revenue: Unearned Revenue means money received from the customer in advance for the…
Q: Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and…
A: High low method: Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest…
Q: What is the interest rate used to accumulate an amount of P10,000 (principal and interest earned)…
A: Interest is the amount charged or received on amount borrowed or invested for the particular period…
Q: Required: 1. Reconcile the number of physical units to find the missing amounts. 2. Calculate the…
A: Materials is the direct cost incurred on the making of the goods whereas conversion cost includes…
Q: How much discount interest will there be if $12,500 is due at the end of 3 years with a 12% discount…
A: Concept of calculating the present value Calculation of Present Value Formula for Calculation of…
Q: gs $178,000 32,700 $178,000 a summary of the transactions for the year: Provide services to…
A: Journal Entries for transactions for the year No Date Accounts Debit Credit 1 12-Jan…
Q: In the month of April, a department had 500 units in the beginning work in process inventory that…
A: In this question we have to use weighted average method because Units completed and transferred…
Q: Assume the following information: Milling Department Units Percent Complete Materials Conversion…
A: Weighted average method is one of the method used in area of process cost accounting. Under this…
Q: Assume the following: Purchases of raw materials $ 38,000 Beginning raw materials inventory $…
A: Raw Material used :— It is the total cost of raw materials used in the manufacturing process of…
Q: he following information relates to the pension plan of Brown company. Defined benefit…
A: Retirement benefit expense is one of the important expense which is reported in income statement. It…
Q: A company paid a $50,000 cash dividend to its shareholders. How should this transaction be recorded?…
A: The dividend is a method of distributing profits among shareholders. The preference shareholders…
Q: The partnership agreement of X and Y provides that 12% interest per year is to be credited to each…
A: A partnership is an agreement between two or more partners where partners are agreed to work…
Q: BCA Company issued 1,000 shares with P 5 par to Atty Bryant as compensation for 1,000 hours of legal…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Boilermaker Incorporated reported taxable income of $615,000 this year and paid federal income taxes…
A: Earnings & Profits (E&P) is usually the amount of Earnings and Profits computed on an annual…
Q: North Coast Petroleum holds huge reserves of oil assets. Assume that at the end of 2024, North Coast…
A: DEPLETION This Method is Specially Suited to mines, Oil wells, Quarries, Sandpits and Similar…
Q: Wilcox Mills is a manufacturer that makes all sales on 30-day credit terms. Annual sales are…
A: Allowance for Doubtful Accounts - Allowance for doubtful account is the contra account used to…
Q: What does The Securities and Exchange Commission do?
A: Financial market refers to the system where the trading of financial instruments between buyers and…
Q: How can a system ensure that those who benefit most from an accounting standard requiring certain…
A: Free-riders are those who utilise information once it is openly accessible.Information can be sold…
Q: On November 1, 2022, SAN JOSE receives an order from a customer for a computer as well as 12 months…
A: Unearned sales Revenue: Unearned sales Revenue means money received from the customer in advance for…
Q: The Polaris Company uses a job-order costing system. The following transactions occurred in October:…
A: Job order costing: - Job order costing refers to the system in which the cost of manufacturing is…
Q: Effect of Financing on Earnings Per Share BSF Co., which produces and sells skiing equipment, is…
A: Earnings per share=Earnings available for common stockNumber of common shares
Q: On January 15, 2021, X Company bought merchandise from Y Company amounting to P30,000 (VAT…
A: According to the given question, we are required to compute the input tax on the cash discount.…
Q: Why is accounting said to be ‘political’ in nature? How can a conceptual framework help in the…
A: The concept of accounting was developed to record the economic transactions of the business…
Beta Corp. has a branch in Davao City established on May 31, 2022. During 2022, the home office shipped merchandise costing P110,000 to the branch, billed at 110% of cost. At the end of the year, the branch reported sales of P200,000, operating expenses of P80,000, and a net income from its operation of P10,000.
Determine the true net income of the branch.
Step by step
Solved in 4 steps
- Bea Corp. has a branch in Divisoria established on May 31, 2022. During 2022, the home office shipped merchandise costing P110,000 to the branch, billed at 110% of cost. At the end of the year, the branch reported sales of P200,000, operating expenses of P80,000, and a net income from its operation of P10,000. Determine the true net income of the branch.Alpha Corp. has a branch in Pasig City established on May 31, 2021. During 2021, the home office shipped merchandise to the branch at billed value of 125,000 which was 25% above cost. At the end of the year, the branch reported sales of 200,000, operating expenses of 95,000, and a net income from its operation of 15,000. What is the branch's true net income?ABC Company operates a number of branches. On December 31, 2022, its Mindanao branch showed a Home Office Account balance of P547,000 and the home office books showed an Investment in Mindanao branch of P511,000. The following information are made available: 1. A P300,000 shipment, originally intended and charged to Luzon branch was actually shipped to Mindanao branch. 2. Home office was charged for P24,000 for merchandise returned by Mindanao branch on December 30. The home office has not yet received the said merchandise. 3. A P240,000 shipment was charged by the home office to Mindanao branch. However, it was actually shipped and retained by Visayas branch. 4. A P40,000 cash transfer from Visayas was not taken up in the books of the home office. 5. Home office collected P72,000 of the accounts receivable of Mindanao. The branch was not notified of the collection. 6. The home office recorded Mindanao net income at P325,500. However, the correct net income of the branch is P253,500.…
- Cebu Branch submitted the following data to its home office in Manila for 2021, its first year of operation: Sales P2,300,000; Shipments from Home Office P1,850,000; Operating expenses P235.000; Home Office Current P480,000. Shipments to the branch are billed at cost. The December 31 inventory of the branch was P255,500. What was the balance of the Investment in Branch account on December 31, 2021 on the home office books?SG Inc. has a branch in Boracay established on April 1, 2020. During the year 2020, SG shipped merchandise to the branch at billed price of P100,000 which was 25% above cost. At the end of the year, the branch reported sales of P160,000, operating expenses of P76,000 and a net income from operations of P12,000. The true net income of the branch was: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…
- Honesty Corporation’s shipments to and from its Quezon City branch are billed at 125% of cost. On December 31, 2021, QC branch reported the following data at billed price: Inventory January 1, P50,000; shipments received from home office, P1,000,000; shipments returned P100,000; and Inventory December 31, P300,000. The branch reported a net income of P250,000.How much is the adjusted branch net income?On January 1, 2022, first year of operations, Manila Company opened a branch in Bacolod and the following transactions were ascertained from the year: Manila Co. sent P150,000 worth of merchandise to its Bacolod branch. Manila Co. purchased merchandise from vendors worth P280,000. Sales for Manila Co. and Bacolod were P350,000 and P175,000, respectively. Bacolod remitted P35,000 cash to its home office. Manila Co. incurred, but not yet paid P60,000 worth of expenses of which 30% was allocated to the branch during the year. Ending inventory for Bacolod Co. and Manila Co. were P15,500 and P23,500, respectively. 1. What is the balance of the Branch Current Bacolod for the year ended December 31, 2022? (Assuming reciprocal accounts have not yet been eliminated) 2. What is the cost of goods sold reported by Manila Co. for the year ended December 31, 2022?A. P 264,500B. P 414,500C. P 114,500D. P 106,500Hola Corporation’s shipments to and from its Manila branch are billed at 125% of cost. On December 31, 2021, Manila branch reported the following data at billed price: Inventory January 1, P50,000; shipments received from home office, P1,000,000; shipments returned P100,000; and Inventory December 31, P300,000. The branch reported a net income of P250,000.How much is the adjusted branch net income?
- The Armami Corp. established a branch store in Ortigas on June 30, 2020. The branch is to receive substantially all merchandise for sale from the home office. During the remainder of 2020, shipments to the branch amounted to 240,000 that included a 20% mark-up on cost. The branch purchased 180,000 additional merchandise for cash and reported unsold merchandise for 145,000. The branch made sales of 420,000, paid expenses of 105,000 and remitted to the home office all sales proceeds. The allowance for overvaluation of branch inventory account on the home office books showed a balance of 22,500 after adjustment. Required: I. The branch ending inventory that represented purchase from outsiders II. The branch net income as far as the home office is concernedThe Company has a single branch in Southwest. On March 1, 2020, the home office accounting records included an Allowance for Overvaluation of Inventories: Southwest Branch ledger account with a credit balance of $32,000. During March, the following transactions occurred: On March 4, the home office shipped merchandise costing $66,000 to the Southwest Branch and billed it at a price representing a 40% markup on the billed price.On March 8, the branch sold 70% of the merchandise received from the home office on march 4 for $90,000 cash.On March 15, the branch sold 20% of the merchandise received from the home office on march 4 to Hope company for $30,000 on credit.On March 22, the home office informed the branch that it had collected 50% of the amount owed by Hope company.On March 28, the branch paid operating expenses of $10,000 cash.On March 29, Hope company paid the remaining amount due to Southwest branch,On March 30, the home office allocated operating expenses of $4,000 to the…Libscomb Technologies' annual sales are $6,615,140 and all sales are made on credit, it purchases $4,071,988 of materials each year (and this is its cost of goods sold). Libscomb also has $553,442 of inventory, $521,646 of accounts receivable, and beginning and ending of year $448,048 and $420,069 accounts payables (respectively). Assume a 365 day year. What is Libscomb’s Cash Cycle (in days)?