Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 592 views

    Study

    Uploaded by

    irahQ
    The net income of the Agency based on the home office books is: Sales - Agency 1,500,000 Cost of Sales - Agency (800,000) Gross Profit 700,000 Expenses Delivery Expense Maintainance Expense Store Supplies Advertising Expense Net Income 700,000 Therefore, the net income of the Agency as per the home office books is Rs. 700,000

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    Study

    Uploaded by

    irahQ
    592 views10 pages
    The net income of the Agency based on the home office books is: Sales - Agency 1,500,000 Cost of Sales - Agency (800,000) Gross Profit 700,000 Expenses Delivery Expense Maintainance Expense Store Supplies Advertising Expense Net Income 700,000 Therefore, the net income of the Agency as per the home office books is Rs. 700,000

    Original Title

    study.xlsx

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The net income of the Agency based on the home office books is: Sales - Agency 1,500,000 Cost of Sales - Agency (800,000) Gross Profit 700,000 Expenses Delivery Expense Maintainance Expense Store Supplies Advertising Expense Net Income 700,000 Therefore, the net income of the Agency as per the home office books is Rs. 700,000

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    592 views10 pages

    Study

    Uploaded by

    irahQ
    The net income of the Agency based on the home office books is: Sales - Agency 1,500,000 Cost of Sales - Agency (800,000) Gross Profit 700,000 Expenses Delivery Expense Maintainance Expense Store Supplies Advertising Expense Net Income 700,000 Therefore, the net income of the Agency as per the home office books is Rs. 700,000

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 10

    The Following are some of the accounts balances in the book

    Problem Inventory, January 1


    Shipments from Home Office
    Purchases
    Shipment to Branch
    Allowance for Overvaluation
    of Branch Inventory
    Sales
    Operating Expenses

    Per physical count, the ending inventory of the branch 79,700


    inventory of the home office is 120,000. Home office bills its b

    QUESTION 1: Net Income reported in the Books of the Home


    Step 1 Find the COGS Home Office
    Home-Branch Transactions COST

    Beginning Inventory 30,000


    Shipments to Branch 145,000
    Goods Available for Sale 175,000
    Ending Inventory 40,000
    COGS 135,000

    Outsiders- COGS

    Beginning Inventory 19,000


    Purchases 200,000
    Goods Available for Sale 219,000
    Ending Inventory 27,700
    COGS 191,300

    Step 2 Compute the Net Income

    Sales
    COGS:
    Beg. Inventory
    Purchases
    LESS: Shipment to Branch
    Goods Available for Sale
    Ending Inventory
    Gross Profit
    Operating Expenses
    NET INCOME FOR HOME OFFICE BOOKS

    QUESTION 2: Net Income reported in the Book of the Branch

    Sales
    COGS sa HO
    Cogs sa Outsiders
    Gross Profit
    Operating Expenses
    NET INCOME OF THE BRANCH

    Question 3 QUESTION 3: COMBINED NET INCOME


    Net Income sa Home Office
    Net Income sa Branch
    COMBINED NET INCOME

    OR

    Net Income sa Home Office


    Net Income sa Branch (Billed)
    AOI
    COMBINED NET INCOME

    Question 5 QUESTION 5: Ending Inventory to be reported in the combine

    Ending Inventory Branch-


    HO and Branch Transactions
    Ending Inventory Branch-
    Outsiders
    Ending Inventory of Home Office
    TOTAL
    me of the accounts balances in the books of the Home Office and its Branch on December 31, 2019.

    Home Office Books Branch Books


    20,000

    900,000
    Question 4
    58,000
    188,500
    What is the AOI, 200,000
    ending Balance?
    145,000 Anwer: 12,000

    52,500
    1,200,000 720,000
    290,000 110,000

    e ending inventory of the branch 79,700 including goods purchased from outsiders of 27,700 while the ending
    e office is 120,000. Home office bills its branch for merchandise shipmentsat 30% above cost.

    me reported in the Books of the Home Office


    Branch Investment in Branch
    BILLED AOI Shipment to Branch
    Allowance for Overvaluation of Bran
    39,000 9,000
    188,500 43,500 30% Shipment from Home Office
    227,500 52,500 Home Office
    52,000 12,000

    Question No. 1
    175,500 40,500

    Note:    
    Kung ang pangutana net income of Branch (separate books) ang gamiton na COGS sa billed which
    is 175,500.      

    Kung ang pangutana kay combined net income ang gamiton na COGS kay under sa COST
    which is 135,000.

    1,200,000

    20,000
    900,000
    (145,000)
    775,000
    (120,000) 655,000
    545,000
    (290,000)
    ME OFFICE BOOKS 255,000

    me reported in the Book of the Branch

    Question 2
    720,000
    (175,500)
    (191,300)
    353,200
    (110,000)
    243,200

    ED NET INCOME
    255,000 Sales 720,000
    283,700 COGS sa HO (135,000)
    538,700 Cogs sa Outsiders (191,300)
    Gross Profit 393,700
    Operating Expenses (110,000)
    NET INCOME OF THE BRANCH 283,700
    255,000
    243,200
    40,500
    538,700

    nventory to be reported in the combined financial statements

    40,000

    27,700
    120,000
    187,700
    4

    188,500
    145,000
    e for Overvaluation of Branch Inventory 43,500

    188,500
    188,500

    n na COGS sa billed which

    y under sa COST
    Agency Journal Entries in the Home Office Book

    Working Fund- Agency xxx


    Cash xxx
    To record the establishmnent of working fund

    Samples Inventory- Agency xxx


    Shipments to Agency xxx
    To record the shipment of Inventory as samples

    Accounts Receivable xxx


    Sales-Agency xxx
    Fill the sales order from the Agency

    Cost of Sales-Agency xxx


    Shipments to Agency xxx
    COGS attributable to Agency

    Sales- Agency xxx


    Cost of Sales- Agency xxx
    Agency Income xxx
    To close the revenue and expense accounts of Agency

    Agency Income xxx


    Income Summary xxx
    To close Agency Income to Income Summary
    QUESTION: What is the net income of the Agency

    HOME OFFICE BOOKS Sales


    Sales Discount
    1. Working Fund- Agency 55,000 NET SALES
    Cash 55,000 Cost of Sales
    Gross Profit
    Samples Inventory 200,000 Expenses:
    Advertising Materials 20,000 Delivery Expense
    Shipments to Agency 220,000 Maintainance Expense
    Store Supplies
    2. Accounts Receivable 1,500,000 Advertising Expense
    Sales -Agency 1,500,000 NET INCOME

    3. Cost of Sales 800,000


    Shipment to Agency 800,000

    4.Cash 833,000
    Sales Discount 17,000
    Accounts Receivable 850,000

    5. Delivery Expense 5,500


    Maintainance Expense 3,500
    Store Supplies Expense 6,000
    Cash 15,000

    6. Advertising Expense 108,000


    Samples Inventory 100,000
    Advertising Materials 8,000
    1,500,000
    Sales Discount (17,000)
    NET SALES 1,483,000
    Cost of Sales (800,000)
    Gross Profit 683,000

    Delivery Expense (5,500)


    Maintainance Expense (3,500)
    Store Supplies (6,000)
    Advertising Expense (108,000)
    NET INCOME 560,000

    You might also like