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    Answers to Self-Answer Problems

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    3 views2 pages

    Answers To Self-Answer Problems

    Uploaded by

    mdumpacc0

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 2

    Answers to Self-Answering Problems

    Problem 2:
    1. Journal Entries
    1
    HOME OFFICE BOOKS BRANCH BOOKS
    a Investment in Branch 75,000.00 Cash 75,000.00
    Cash 75,000.00 Home Office 75,000.00

    b Investment in Branch 120,000.00 Shipments from Home Office 120,000.00


    Shipments to Branch 120,000.00 Home Office 120,000.00

    c NO ENTRY Purchases 25,000.00


    Accounts payable 25,000.00

    d NO ENTRY Accounts receivable 200,000.00


    Sales 200,000.00

    e Shipments to Branch 12,000.00 Home Office 12,000.00


    Investment in Branch 12,000.00 Shipments from Home Office 12,000.00

    f NO ENTRY Cash 150,000.00


    Accounts receivable 150,000.00

    g Equipment - Branch 25,000.00 Home Office 25,000.00


    Investment in Branch 25,000.00 Cash 25,000.00

    h NO ENTRY Accounts payable 10,000.00


    Cash 10,000.00

    i NO ENTRY Salaries expense 16,000.00


    Rent expense 10,000.00
    Utilities expense 5,000.00
    Miscellaneous expense 15,000.00
    Cash 46,000.00

    j Investment in Branch 9,500.00 Depreciation expense 3,000.00


    Depreciation expense 3,000.00 Rent expense 4,000.00
    Rent expense 4,000.00 Insurance Expense 2,500.00
    Insurance Expense 2,500.00 Home Office 9,500.00

    k Cash 70,000.00 Home Office 70,000.00


    Investment in Branch 70,000.00 Cash 70,000.00

    l Cash 8,000.00 Home Office 8,000.00


    Investment in Branch 8,000.00 Accounts receivable 8,000.00

    m CGS 123,000.00
    Merchandise Invty. 10,000.00
    Purchases 25,000.00
    Shipments from HO 108,000.00

    Sales 200,000.00
    Income Summary 200,000.00

    Income Summary 178,500.00


    Cost of goods sold 123,000.00
    Salaries expense 16,000.00
    Rent expense 14,000.00
    Utilities expense 5,000.00
    Depreciation expense 3,000.00
    Insurance Expense 2,500.00
    Miscellaneous expense 15,000.00

    Investment in Branch 21,500.00 Income Summary 21,500.00


    Branch Income Summary 21,500.00 Home office 21,500.00
    2. 123,000
    3. 55,500
    4. 21,500
    Sales 200,000.00
    Less: CGS
    Beginning Invty. -
    Purch 25,000.00
    Shipments from HO (120K-12k) 108,000.00
    Ending Invty. (10,000.00) 123,000.00
    Gross profit 77,000.00
    Salaries expense (16,000.00)
    Rent expense (10K + 4K) (14,000.00)
    Utilities expense (5,000.00)
    Depreciation expense (3,000.00)
    Insurance Expense (2,500.00)
    Miscellaneous expense (15,000.00) 55,500.00
    Net income 21,500.00

    Problem 5:
    1. 40%
    2. 30%
    3. 75,000
    4. 100,000

    At BP At Cost Overval.
    100%
    BI-HO 49,000.00 35,000.00 14,000.00 40%
    SHO 156,000.00 120,000.00 36,000.00 30%
    COGAS-HO 205,000.00 155,000.00 50,000.00
    EI-HO 130,000.00 100,000.00 30,000.00
    CGS-HO 75,000.00 55,000.00 20,000.00

    ---END---

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