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Jerah Y. Torrejos: Home Office Books Branch Office Books

This document records 12 transactions between the home office and branch office of a company. It records the initial transfer of cash and inventory from the home office to the branch office. It then records purchases, sales, expenses and revenue for the branch. Finally, it closes the accounting periods and calculates the branch income as $25,000 for the period.

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89 views

Jerah Y. Torrejos: Home Office Books Branch Office Books

This document records 12 transactions between the home office and branch office of a company. It records the initial transfer of cash and inventory from the home office to the branch office. It then records purchases, sales, expenses and revenue for the branch. Finally, it closes the accounting periods and calculates the branch income as $25,000 for the period.

Uploaded by

irahQ
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Jerah Y.

Torrejos
HOME OFFICE BOOKS BRANCH OFFICE BOOKS

1. Investment in Branch 35,000 Cash 35,000


Cash 35,000 Home Office 35,000
To record the transfer of Cash to the Branch. To record the transfer of cash from Home
Office.

2. Investment in Branch 75,000 Shipment from Home 75,000


Office
Shipment to 75,000 Home Office 75,000
Branch
To record the transfer of merchandise to the To record the transfer of merchandise from
Branch at cost. the Home Office at cost.

3. Merchandise Display 15,000 Home Office 15,000


Equipment
Investment in 15,000 Cash 15,000
Branch
To record the merchandise display equipment To record the merchandise display
purchase of the Branch. equipment purchased.

4. - Purchases 53,750
Accounts 53,750
Payable
To record the purchase of inventory on
account.

5. - Cash 43,750
Accounts Receivable 106,250
Sales 150,000
To record the cash and credit sales.

6. - Cash 55,000
Accounts 55,000
Receivable
To record the collection of Accounts
Receivable.

7. - Accounts Payable 35,000


Cash 35,000
To record the payment to outside creditors.

8. - Selling Expense 18,750


General and 15,000
Admirative Expense
Cash 33,750

To record the expense paid.

9. Investment in Branch 2,500 Insurance Expense 2,500


Insurance 2,500 Home Office 2,500
Expense
To record the insurance expense allocated by To record the insurance expense allocated
to the Branch. by the Home Office.
10. Investment in Branch 1,250 Selling Expense 1,250
Selling Expense 1,250 Home Office 1,250
To record the allocated depreciation expense To record the allocated expense from the
to the Branch. Home Office.

11. Cash 12,500 Home Office 12,500


Investment in 12,500 Cash 12,500
Branch
To record the remittance from the Branch. To record the remittance to Home Office.

12 Cost of Goods Sold 87,500


Inventory 87,500

Investment in Branch 25,000 Sales 150,000


Branch Income 25,000 Income 150,000
Summary
To record Branch Income. To close Sales.

Inventory 12/31/09 41,250


Shipment from 31,250
Home Office
Purchases 10,000
To Close Cost of Sales.

Sales 150,000 Shipment to Branch 75,000


Cost of Goods Sold (87,500 ) Purchases 53,750
Gross Profit 62,500 128,750
Operating Expenses: Ending Inventory (41,250)
Selling Exp. (20,000) COGS 87,500
G, and Admin (15,000)
Insurance Exp. (2,500)
Net Income 25,000

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