(a) Office Books:

(a) Branch ………………………………………………………. 42,500

Cash ……………………………………………………. 42,500

(b) Branch ……………………………………………………… 50,200

Shipments to Branch ……………………………….. 50,200

(c) Accounts Receivable …………………………………... 105,000

Sales …………………………………………………… 105,000

(d) Purchases …………………………………………………. 122,500

Accounts Payable …………………………………. 122,500

(e) Cash ……………………………………………………….. 113,600

Accounts Receivable ……………………………… 113,600

(f) Accounts Payable ………………………………………. 124,000

Cash …………………………………………………… 124,000

(g) Expenses …………………………………………………… 26,600

Cash …………………………………………………… 26,600

(h) Cash ……………………………………………………….. 53,400

Branch ………………………………………………... 53,400

(i) Retained Earnings ………………………………………. 10,000

Cash …………………………………………………... 10,000

BARTON CO.

Balance Sheet for Branch

December 31, 20x4

Assets Liabilities
Cash …………………………… P 4,250 Accounts Payable ………… P 10,250

Accounts Receivable ……… 12,600 Accrued Expenses …………… 300

Merchandise Inv……………... 23,500 Home Office ………………….. 37,900

Prepaid Expenses …………… 750

Furnitures & Fixtures …. P 8,000

Less accum. Depr …… 650 7,350

Total Assets …………………… P48,450 Total Liabilities ………………….P48,450

BARTON CO.

Income Statement for Branch

For Year Ended December 31, 19X6

Sales …………………………………………………………………………… P66,000

Cost of Goods Sold:

Purchases …………………………………………………………… P22,500

Shipments for home office ………………………………………. 50,200

Merchandise available for sale ………………………………… P72,700

Less Branch Books:

Expenses ………………………………………………………………. 650

Accumulated Depreciation – F&F………………………. 650
Sales …………………………………………………………………… 66,000
 Merchandise Inventory ……………………………………………. 23,500
Income summary ………………………………………….. 89,500

Income Summary …………………………………………………… 90,900

Shipments from Home Office …………………………… 50,200
Purchases …………………………………………………… 22,500
Expenses …………………………………………………….. 18,200

Home Office ………………………………………………………… 1,400

Income Summary ………………………………………… 1,400

(a) Home Office Books

Expenses ………………………………………………………………. 1,180
Accumulated Depreciation – F&F………………………. 1,180

Sales …………………………………………………………………… 105,000

Merchandise Inventory ……………………………………………. 48,500

Shipments to Branch ……………………………………………….. 50,200

Income summary ………………………………………….. 203,700

Income Summary …………………………………………………… 190,250

Merchandise Inventory …………………………………… 40,120

Purchases ……………………………………………………. 122,500

Expenses …………………………………………………….. 27,630

Branch Income ……………………………………………………… 1,400

Branch ………………………………………………………. Cash ……………………………………………………..

18,000
(b) Home Office Books:
(c) Office Books:

(j) Branch ………………………………………………………. 42,500

Cash ……………………………………………………. 42,500

(k) Branch ……………………………………………………… 50,200

Shipments to Branch ……………………………….. 50,200

(l) Accounts Receivable …………………………………... 105,000

Sales …………………………………………………… 105,000

(m) Purchases …………………………………………………. 122,500

Accounts Payable …………………………………. 122,500

(n) Cash ……………………………………………………….. 113,600

Accounts Receivable ……………………………… 113,600

(o) Accounts Payable ………………………………………. 124,000

Cash …………………………………………………… 124,000

(p) Expenses …………………………………………………… 26,600

Cash …………………………………………………… 26,600

(q) Cash ……………………………………………………….. 53,400

Branch ………………………………………………... 53,400

(r) Retained Earnings ………………………………………. 10,000

Cash …………………………………………………... 10,000

BARTON CO.

Balance Sheet for Branch

December 31, 20x4

Assets Liabilities
Cash …………………………… P 4,250 Accounts Payable ………… P 10,250

Accounts Receivable ……… 12,600 Accrued Expenses …………… 300

Merchandise Inv……………... 23,500 Home Office ………………….. 37,900

Prepaid Expenses …………… 750

Furnitures & Fixtures …. P 8,000

Less accum. Depr …… 650 7,350

Total Assets …………………… P48,450 Total Liabilities ………………….P48,450

BARTON CO.

Income Statement for Branch

For Year Ended December 31, 19X6

Sales …………………………………………………………………………… P66,000

Cost of Goods Sold:

Purchases …………………………………………………………… P22,500

Shipments for home office ………………………………………. 50,200

Merchandise available for sale ………………………………… P72,700

Less Branch Books:

Expenses ………………………………………………………………. 650

Accumulated Depreciation – F&F………………………. 650
Sales …………………………………………………………………… 66,000
 Merchandise Inventory ……………………………………………. 23,500
Income summary ………………………………………….. 89,500

Income Summary …………………………………………………… 90,900

Shipments from Home Office …………………………… 50,200
Purchases …………………………………………………… 22,500
Expenses …………………………………………………….. 18,200

Home Office ………………………………………………………… 1,400

Income Summary ………………………………………… 1,400

(b) Home Office Books

Expenses ………………………………………………………………. 1,180
Accumulated Depreciation – F&F………………………. 1,180

Sales …………………………………………………………………… 105,000

Merchandise Inventory ……………………………………………. 48,500

Shipments to Branch ……………………………………………….. 50,200

Income summary ………………………………………….. 203,700

Income Summary …………………………………………………… 190,250

Merchandise Inventory …………………………………… 40,120

Purchases ……………………………………………………. 122,500

Expenses …………………………………………………….. 27,630

Branch Income ……………………………………………………… 1,400

Branch ………………………………………………………. Cash ……………………………………………………..

18,000
(d) Home Office Books:
Cash …………………………………………………….. 18,000

(e) Home Office Books:

(s) Branch ………………………………………………………. 42,500

Cash ……………………………………………………. 42,500

(t) Branch ……………………………………………………… 50,200

Shipments to Branch ……………………………….. 50,200

(u) Accounts Receivable …………………………………... 105,000

Sales …………………………………………………… 105,000

(v) Purchases …………………………………………………. 122,500

Accounts Payable …………………………………. 122,500

(w) Cash ……………………………………………………….. 113,600

Accounts Receivable ……………………………… 113,600

(x) Accounts Payable ………………………………………. 124,000

Cash …………………………………………………… 124,000

(y) Expenses …………………………………………………… 26,600

Cash …………………………………………………… 26,600

(z) Cash ……………………………………………………….. 53,400

Branch ………………………………………………... 53,400

(aa) Retained Earnings ………………………………………. 10,000

Cash …………………………………………………... 10,000

BARTON CO.

Balance Sheet for Branch

December 31, 20x4

 Assets Liabilities

Cash …………………………… P 4,250 Accounts Payable ………… P 10,250

Accounts Receivable ……… 12,600 Accrued Expenses …………… 300

Merchandise Inv……………... 23,500 Home Office ………………….. 37,900

Prepaid Expenses …………… 750

Furnitures & Fixtures …. P 8,000

Less accum. Depr …… 650 7,350

Total Assets …………………… P48,450 Total Liabilities ………………….P48,450

BARTON CO.

Income Statement for Branch

For Year Ended December 31, 19X6

Sales …………………………………………………………………………… P66,000

Cost of Goods Sold:

Purchases …………………………………………………………… P22,500

Shipments for home office ………………………………………. 50,200

Merchandise available for sale ………………………………… P72,700

Less merchandise inv, December 31 ………………………….. 23,500

Cost of Goods Sold ……………………………………………….. 49,200

Gross Profit ……………………………………………………………………. P16,800

Expenses ……………………………………………………………………… 18,200

Net loss ………………………………………………………………………... P 1,400

BARTON CO.

Income Statement for Branch

For Year Ended December 31, 20x4

Assets Liabilities & Stockholders’ Equity

Cash …………………………….. P 23,200 Liabilities

Accounts Receivable ……….. 19,050 Accounts payable ………… P 21,300
Merchandise Inventory……… 48,500 Accrued Expenses …………. 1,350 P22,650
Prepaid Expenses ……………. 2,050 Stockholders Equity
Furniture & Fixtures …. P 20,000 Capital stock, P20 par……… P50,000
Less accum. Depr….. 5,580 14,420 Retained Earnings …………. 72,740 122,470
Branch ………………………… 37,900 Total liabilities and stockholders’
Total Assets …………………... P145,120 equity ………………… P145,120

BARTON CO.

Income Statement for Home Office

For Year Ended December 31, 20x4

Sales ……………………………………………………………………………....... P105,000

Cost of goods sold:

 Merchandise inventory, January 1 …………………………………. P 40,120

Purchases ………………………………………………………………... 122,500

Merchandise available for sale ……………………………………… P162,620

Less shipments to branch ……………………………………………... 50,200

Merchandise available for own sale ……………………………….. P112,420

Less merchandise inventory, December 31 ………………………. 48,500

Cost of Goods Sold ……………………………………………………. 63,920

Gross Profit ………………………………………………………………………… P 41,080

Expenses …………………………………………………………………………… 27,630

Net income from own operations …………………………………………….. P 13,450

Deduct branch net loss …………………………………………………………. 1,400

Total Income ………………………………………………………………………. P 12,050

BARTON CO.

Income Statement for Home Office

For Year Ended December 31, 20x4

Sales …………………………………………………………………………………. P171,000

Cost of goods sold:

Merchandise inventory, January 1 ………………………………….. P 40,120

 Purchases ………………………………………………………………… 145,000

Merchandise available for sale ……………………………………… P185,120

Less merchandise inventory, December 31 ……………………….. 72,000

Cost of goods sold ………………………………………………………. 113,120

Gross profit ………………………………………………………………………….. P 57,880

Expenses …………………………………………………………………………….. 45,830

Net Income …………………………………………………………………………. P 12,050

(c) Branch Books:

Expenses ………………………………………………………………. 650
Accumulated Depreciation – F&F………………………. 650
Sales …………………………………………………………………… 66,000
Merchandise Inventory ……………………………………………. 23,500
Income summary ………………………………………….. 89,500

Income Summary …………………………………………………… 90,900

Shipments from Home Office …………………………… 50,200
Purchases …………………………………………………… 22,500
Expenses …………………………………………………….. 18,200

Home Office ………………………………………………………… 1,400

Income Summary ………………………………………… 1,400

(d) Home Office Books

Expenses ………………………………………………………………. 1,180
Accumulated Depreciation – F&F………………………. 1,180

Sales …………………………………………………………………… 105,000

Merchandise Inventory ……………………………………………. 48,500

 Shipments to Branch ……………………………………………….. 50,200

Income summary ………………………………………….. 203,700

Income Summary …………………………………………………… 190,250

Merchandise Inventory …………………………………… 40,120

Purchases ……………………………………………………. 122,500

Expenses …………………………………………………….. 27,630

Branch Income ……………………………………………………… 1,400

Branch ………………………………………………………. Cash ……………………………………………………..

18,000

(f) Home Office Books:

(bb) Branch ………………………………………………………. 42,500

Cash ……………………………………………………. 42,500

(cc) Branch ……………………………………………………… 50,200

Shipments to Branch ……………………………….. 50,200

(dd) Accounts Receivable …………………………………... 105,000

Sales …………………………………………………… 105,000

(ee) Purchases …………………………………………………. 122,500

Accounts Payable …………………………………. 122,500

(ff) Cash ……………………………………………………….. 113,600

Accounts Receivable ……………………………… 113,600

(gg) Accounts Payable ………………………………………. 124,000

Cash …………………………………………………… 124,000
 (hh) Expenses …………………………………………………… 26,600
Cash …………………………………………………… 26,600

(ii) Cash ……………………………………………………….. 53,400

Branch ………………………………………………... 53,400

(jj) Retained Earnings ………………………………………. 10,000

Cash …………………………………………………... 10,000

BARTON CO.

Balance Sheet for Branch

December 31, 20x4

Assets Liabilities

Cash …………………………… P 4,250 Accounts Payable ………… P 10,250

Accounts Receivable ……… 12,600 Accrued Expenses …………… 300

Merchandise Inv……………... 23,500 Home Office ………………….. 37,900

Prepaid Expenses …………… 750

Furnitures & Fixtures …. P 8,000

Less accum. Depr …… 650 7,350

Total Assets …………………… P48,450 Total Liabilities ………………….P48,450

BARTON CO.

Income Statement for Branch

 For Year Ended December 31, 19X6

Sales …………………………………………………………………………… P66,000

Cost of Goods Sold:

Purchases …………………………………………………………… P22,500

Shipments for home office ………………………………………. 50,200

Merchandise available for sale ………………………………… P72,700

Less merchandise inv, December 31 ………………………….. 23,500

Cost of Goods Sold ……………………………………………….. 49,200

Gross Profit ……………………………………………………………………. P16,800

Expenses ……………………………………………………………………… 18,200

Net loss ………………………………………………………………………... P 1,400

BARTON CO.

Income Statement for Branch

For Year Ended December 31, 20x4

Assets Liabilities & Stockholders’ Equity

Cash …………………………….. P 23,200 Liabilities

Accounts Receivable ……….. 19,050 Accounts payable ………… P 21,300
Merchandise Inventory……… 48,500 Accrued Expenses …………. 1,350 P22,650
Prepaid Expenses ……………. 2,050 Stockholders Equity
Furniture & Fixtures …. P 20,000 Capital stock, P20 par……… P50,000
Less accum. Depr….. 5,580 14,420 Retained Earnings …………. 72,740 122,470
Branch ………………………… 37,900 Total liabilities and stockholders’
Total Assets …………………... P145,120 equity ………………… P145,120

BARTON CO.

Income Statement for Home Office

For Year Ended December 31, 20x4

Sales ……………………………………………………………………………....... P105,000

Cost of goods sold:

Merchandise inventory, January 1 …………………………………. P 40,120

Purchases ………………………………………………………………... 122,500

Merchandise available for sale ……………………………………… P162,620

Less shipments to branch ……………………………………………... 50,200

Merchandise available for own sale ……………………………….. P112,420

Less merchandise inventory, December 31 ………………………. 48,500

Cost of Goods Sold ……………………………………………………. 63,920

Gross Profit ………………………………………………………………………… P 41,080

Expenses …………………………………………………………………………… 27,630

Net income from own operations …………………………………………….. P 13,450

Deduct branch net loss …………………………………………………………. 1,400

Total Income ………………………………………………………………………. P 12,050

Income Summary …………………………………………………… 190,250

Merchandise Inventory …………………………………… 40,120

Purchases ……………………………………………………. 122,500

Expenses …………………………………………………….. 27,630

Branch Income ……………………………………………………… 1,400

Branch ………………………………………………………. Cash ……………………………………………………..

18,000

(g) Home Office Books:

(kk) Branch ………………………………………………………. 42,500

Cash ……………………………………………………. 42,500

(ll) Branch ……………………………………………………… 50,200

Shipments to Branch ……………………………….. 50,200

(mm) Accounts Receivable …………………………………... 105,000

Sales …………………………………………………… 105,000

(nn) Purchases …………………………………………………. 122,500

Accounts Payable …………………………………. 122,500

(oo) Cash ……………………………………………………….. 113,600

Accounts Receivable ……………………………… 113,600

(pp) Accounts Payable ………………………………………. 124,000

Cash …………………………………………………… 124,000

(qq) Expenses …………………………………………………… 26,600

 Cash …………………………………………………… 26,600

(rr) Cash ……………………………………………………….. 53,400

Branch ………………………………………………... 53,400

(ss) Retained Earnings ………………………………………. 10,000

Cash …………………………………………………... 10,000

BARTON CO.

Balance Sheet for Branch

December 31, 20x4

Assets Liabilities

Cash …………………………… P 4,250 Accounts Payable ………… P 10,250

Accounts Receivable ……… 12,600 Accrued Expenses …………… 300

Merchandise Inv……………... 23,500 Home Office ………………….. 37,900

Prepaid Expenses …………… 750

Furnitures & Fixtures …. P 8,000

Less accum. Depr …… 650 7,350

Total Assets …………………… P48,450 Total Liabilities ………………….P48,450

BARTON CO.

Income Statement for Branch

For Year Ended December 31, 19X6

Sales …………………………………………………………………………… P66,000

Cost of Goods Sold:

Purchases …………………………………………………………… P22,500

Shipments for home office ………………………………………. 50,200

Merchandise available for sale ………………………………… P72,700

Less merchandise inv, December 31 ………………………….. 23,500

Cost of Goods Sold ……………………………………………….. 49,200

Gross Profit ……………………………………………………………………. P16,800

Expenses ……………………………………………………………………… 18,200

Net loss ………………………………………………………………………... P 1,400

BARTON CO.

Income Statement for Branch

For Year Ended December 31, 20x4

Assets Liabilities & Stockholders’ Equity

Cash …………………………….. P 23,200 Liabilities

Accounts Receivable ……….. 19,050 Accounts payable ………… P 21,300
Merchandise Inventory……… 48,500 Accrued Expenses …………. 1,350 P22,650
Prepaid Expenses ……………. 2,050 Stockholders Equity
Furniture & Fixtures …. P 20,000 Capital stock, P20 par……… P50,000
Less accum. Depr….. 5,580 14,420 Retained Earnings …………. 72,740 122,470
Branch ………………………… 37,900 Total liabilities and stockholders’
Total Assets …………………... P145,120 equity ………………… P145,120

BARTON CO.

Income Statement for Home Office

For Year Ended December 31, 20x4

Sales ……………………………………………………………………………....... P105,000

Cost of goods sold:

Merchandise inventory, January 1 …………………………………. P 40,120

Purchases ………………………………………………………………... 122,500

Merchandise available for sale ……………………………………… P162,620

Less shipments to branch ……………………………………………... 50,200

Merchandise available for own sale ……………………………….. P112,420

Less merchandise inventory, December 31 ………………………. 48,500

Cost of Goods Sold ……………………………………………………. 63,920

Gross Profit ………………………………………………………………………… P 41,080

Expenses …………………………………………………………………………… 27,630

Net income from own operations …………………………………………….. P 13,450

Deduct branch net loss …………………………………………………………. 1,400

Total Income ………………………………………………………………………. P 12,050

 BARTON CO.

Income Statement for Home Office

For Year Ended December 31, 20x4

Sales …………………………………………………………………………………. P171,000

Cost of goods sold:

Merchandise inventory, January 1 ………………………………….. P 40,120

Purchases ………………………………………………………………… 145,000

Merchandise available for sale ……………………………………… P185,120

Less merchandise inventory, December 31 ……………………….. 72,000

Cost of goods sold ………………………………………………………. 113,120

Gross profit ………………………………………………………………………….. P 57,880

Expenses …………………………………………………………………………….. 45,830

Net Income …………………………………………………………………………. P 12,050

(e) Branch Books:

Expenses ………………………………………………………………. 650
Accumulated Depreciation – F&F………………………. 650
Sales …………………………………………………………………… 66,000
Merchandise Inventory ……………………………………………. 23,500
Income summary ………………………………………….. 89,500

Income Summary …………………………………………………… 90,900

 Shipments from Home Office …………………………… 50,200
Purchases …………………………………………………… 22,500
Expenses …………………………………………………….. 18,200

Home Office ………………………………………………………… 1,400

Income Summary ………………………………………… 1,400

(f) Home Office Books

Expenses ………………………………………………………………. 1,180
Accumulated Depreciation – F&F………………………. 1,180

Sales …………………………………………………………………… 105,000

Merchandise Inventory ……………………………………………. 48,500

Shipments to Branch ……………………………………………….. 50,200

Income summary ………………………………………….. 203,700

Income Summary …………………………………………………… 190,250

Merchandise Inventory …………………………………… 40,120

Purchases ……………………………………………………. 122,500

Expenses …………………………………………………….. 27,630

Branch Income ……………………………………………………… 1,400

Branch ………………………………………………………. Problem V continued

Credits
Accumulated Depreciation – Furniture
And Fixtures ……………………… 2,585 576 ……….. ……….. ……….. ……….. ……….. 3,161
Unrealized Intercompany Inventory ……….. ……….. (b) 1,700 ……….. ……….. ……….. ……….. ………..
Profit ………………………………. 3,700 ……….. (c) 2,000 ……….. ……….. ……….. ……….. ………..
……….. ……….. ……….. ………..
Salaries and Commissions Expense . 4,250 2,350 ……….. 6,600 ……….. ……….. ……….. ………..
Store Supplies Expense ………………. 560 280 ……….. 840 ……….. ……….. ……….. ………..
Miscellaneous Selling Expense …….. 1,850 1,050 ……….. 2,900 ……….. ……….. ……….. ………..
Rent Expense ………………………….. 2,700 1,500 ……….. 4,200 ……….. ……….. ……….. ………..
Depreciation Expense – F&F ……….. 85 36 ……….. 121 ……….. ……….. ……….. ………..
Miscellaneous General Expense ….. 2,510 95 ……….. 3,415 ……….. ……….. ……….. ………..
160,295 57,141 ……….. ……….. ……….. ……….. ……….. ………..
Merchandise Inv, Dec 31 …………… 24,900 14,600 ……….. (d) 1,950 ……….. ……….. 36,850 ………..
Problem V
SPENCER CO.
Work Sheet for Combined Statements for Home Office and Branch
December 31, 20x5

Adjustments Income Balance

Home and Eliminations Statement Sheet
Office Branch Dr. Cr. Dr. Cr. Dr. Cr.

Debits
Cash …………………………………….. 10,350 2,650 ……….. ……….. ……….. ……….. 13,100 ………..
Cash in Transit …………………………. 1,500 …….. ……….. ……….. ……….. ……….. 1,500 ………..
Accounts Receivable ………………. 26,200 12,850 ……….. ……….. ……….. ……….. 39,050 ………..
Merchandise Inv. Dec 1 ……………. 31,500 14,400 (c) 2,000 43,900 ……….. ……….. ……….. ………..
Store Supplies …………………………. 380 300 ……….. ……….. ……….. ……….. 580 ………..
Prepaid Expenses ……………………. 350 120 ……….. ……….. ……….. ……….. 470 ………..
Furniture & Fixtures …………………… 8,500 3,600 ……….. ……….. ……….. ……….. 12,700 ………..
Branch…………………………………… 32,260 ……… (a) ……….. 32,260 ……….. ……….. ……….. ………..
Retained Earnings ……………………. 6,850 ……… ……….. ……….. ……….. ……….. 6,850 ………..
Purchases ………………………………. 27,600 4,100 ……….. ……….. ……….. ……….. ……….. ………..
Shipments from Home Office ………………… 10,200 (b) 10,200 ……….. ……….. ……….. ……….. ………..
Advertising Expense …………………. 2,850 2,800 ……….. 5,650 ……….. ……….. ……….. ………..
Salaries and Commissions Expense . 4,250 2,350 ……….. 6,600 ……….. ……….. ……….. ………..
Store Supplies Expense ………………. 560 280 ……….. 840 ……….. ……….. ……….. ………..
Miscellaneous Selling Expense …….. 1,850 1,050 ……….. 2,900 ……….. ……….. ……….. ………..
Rent Expense ………………………….. 2,700 1,500 ……….. 4,200 ……….. ……….. ……….. ………..
Depreciation Expense – F&F ……….. 85 36 ……….. 121 ……….. ……….. ……….. ………..
Miscellaneous General Expense ….. 2,510 95 ……….. 3,415 ……….. ……….. ……….. ………..
160,295 57,141 ……….. ……….. ……….. ……….. ……….. ………..
Merchandise Inv, Dec 31 …………… 24,900 14,600 ……….. (d) 1,950 ……….. ……….. 36,850 ………..
Problem V
SPENCER CO.
Work Sheet for Combined Statements for Home Office and Branch
December 31, 20x5

Adjustments Income Balance

Home and Eliminations Statement Sheet
Office Branch Dr. Cr. Dr. Cr. Dr. Cr.

Debits
Cash …………………………………….. 10,350 2,650 ……….. ……….. ……….. ……….. 13,100 ………..
Cash in Transit …………………………. 1,500 …….. ……….. ……….. ……….. ……….. 1,500 ………..
Accounts Receivable ………………. 26,200 12,850 ……….. ……….. ……….. ……….. 39,050 ………..
Merchandise Inv. Dec 1 ……………. 31,500 14,400 (c) 2,000 43,900 ……….. ……….. ……….. ………..
Store Supplies …………………………. 380 300 ……….. ……….. ……….. ……….. 580 ………..
Prepaid Expenses ……………………. 350 120 ……….. ……….. ……….. ……….. 470 ………..
Furniture & Fixtures …………………… 8,500 3,600 ……….. ……….. ……….. ……….. 12,700 ………..
Branch…………………………………… 32,260 ……… (a) ……….. 32,260 ……….. ……….. ……….. ………..
Retained Earnings ……………………. 6,850 ……… ……….. ……….. ……….. ……….. 6,850 ………..
Purchases ………………………………. 27,600 4,100 ……….. ……….. ……….. ……….. ……….. ………..
Shipments from Home Office ………………… 10,200 (b) 10,200 ……….. ……….. ……….. ……….. ………..
Advertising Expense …………………. 2,850 2,800 ……….. 5,650 ……….. ……….. ……….. ………..
Salaries and Commissions Expense . 4,250 2,350 ……….. 6,600 ……….. ……….. ……….. ………..
Store Supplies Expense ………………. 560 280 ……….. 840 ……….. ……….. ……….. ………..
Miscellaneous Selling Expense …….. 1,850 1,050 ……….. 2,900 ……….. ……….. ……….. ………..
Rent Expense ………………………….. 2,700 1,500 ……….. 4,200 ……….. ……….. ……….. ………..
Depreciation Expense – F&F ……….. 85 36 ……….. 121 ……….. ……….. ……….. ………..
Miscellaneous General Expense ….. 2,510 95 ……….. 3,415 ……….. ……….. ……….. ………..
160,295 57,141 ……….. ……….. ……….. ……….. ……….. ………..
Merchandise Inv, Dec 31 …………… 24,900 14,600 ……….. (d) 1,950 ……….. ……….. 36,850 ………..
Problem V
SPENCER CO.
Work Sheet for Combined Statements for Home Office and Branch
December 31, 20x5

Adjustments Income Balance

Home and Eliminations Statement Sheet
Office Branch Dr. Cr. Dr. Cr. Dr. Cr.

Debits
Cash …………………………………….. 10,350 2,650 ……….. ……….. ……….. ……….. 13,100 ………..
Cash in Transit …………………………. 1,500 …….. ……….. ……….. ……….. ……….. 1,500 ………..
Accounts Receivable ………………. 26,200 12,850 ……….. ……….. ……….. ……….. 39,050 ………..
Merchandise Inv. Dec 1 ……………. 31,500 14,400 (c) 2,000 43,900 ……….. ……….. ……….. ………..
Store Supplies …………………………. 380 300 ……….. ……….. ……….. ……….. 580 ………..
Prepaid Expenses ……………………. 350 120 ……….. ……….. ……….. ……….. 470 ………..
Furniture & Fixtures …………………… 8,500 3,600 ……….. ……….. ……….. ……….. 12,700 ………..
Branch…………………………………… 32,260 ……… (a) ……….. 32,260 ……….. ……….. ……….. ………..
Retained Earnings ……………………. 6,850 ……… ……….. ……….. ……….. ……….. 6,850 ………..
Purchases ………………………………. 27,600 4,100 ……….. ……….. ……….. ……….. ……….. ………..
Shipments from Home Office ………………… 10,200 (b) 10,200 ……….. ……….. ……….. ……….. ………..
Advertising Expense …………………. 2,850 2,800 ……….. 5,650 ……….. ……….. ……….. ………..
Salaries and Commissions Expense . 4,250 2,350 ……….. 6,600 ……….. ……….. ……….. ………..
Store Supplies Expense ………………. 560 280 ……….. 840 ……….. ……….. ……….. ………..
Miscellaneous Selling Expense …….. 1,850 1,050 ……….. 2,900 ……….. ……….. ……….. ………..
Rent Expense ………………………….. 2,700 1,500 ……….. 4,200 ……….. ……….. ……….. ………..
Depreciation Expense – F&F ……….. 85 36 ……….. 121 ……….. ……….. ……….. ………..
Miscellaneous General Expense ….. 2,510 95 ……….. 3,415 ……….. ……….. ……….. ………..
160,295 57,141 ……….. ……….. ……….. ……….. ……….. ………..
Merchandise Inv, Dec 31 …………… 24,900 14,600 ……….. (d) 1,950 ……….. ……….. 36,850 ………..
Problem V
SPENCER CO.
Work Sheet for Combined Statements for Home Office and Branch
December 31, 20x5

Adjustments Income Balance

Home and Eliminations Statement Sheet
Office Branch Dr. Cr. Dr. Cr. Dr. Cr.

Debits
Cash …………………………………….. 10,350 2,650 ……….. ……….. ……….. ……….. 13,100 ………..
Cash in Transit …………………………. 1,500 …….. ……….. ……….. ……….. ……….. 1,500 ………..
Accounts Receivable ………………. 26,200 12,850 ……….. ……….. ……….. ……….. 39,050 ………..
Merchandise Inv. Dec 1 ……………. 31,500 14,400 (c) 2,000 43,900 ……….. ……….. ……….. ………..
Store Supplies …………………………. 380 300 ……….. ……….. ……….. ……….. 580 ………..
Prepaid Expenses ……………………. 350 120 ……….. ……….. ……….. ……….. 470 ………..
Furniture & Fixtures …………………… 8,500 3,600 ……….. ……….. ……….. ……….. 12,700 ………..
Branch…………………………………… 32,260 ……… (a) ……….. 32,260 ……….. ……….. ……….. ………..
Retained Earnings ……………………. 6,850 ……… ……….. ……….. ……….. ……….. 6,850 ………..
Purchases ………………………………. 27,600 4,100 ……….. ……….. ……….. ……….. ……….. ………..
Shipments from Home Office ………………… 10,200 (b) 10,200 ……….. ……….. ……….. ……….. ………..
Advertising Expense …………………. 2,850 2,800 ……….. 5,650 ……….. ……….. ……….. ………..
Salaries and Commissions Expense . 4,250 2,350 ……….. 6,600 ……….. ……….. ……….. ………..
Store Supplies Expense ………………. 560 280 ……….. 840 ……….. ……….. ……….. ………..
Miscellaneous Selling Expense …….. 1,850 1,050 ……….. 2,900 ……….. ……….. ……….. ………..
Rent Expense ………………………….. 2,700 1,500 ……….. 4,200 ……….. ……….. ……….. ………..
Depreciation Expense – F&F ……….. 85 36 ……….. 121 ……….. ……….. ……….. ………..
Miscellaneous General
Accounts Payable ……………… 36,400 4,200 ……….. ……….. ……….. ……….. ……….. 39,000
Accrued Expenses ……………... 260 105 ……….. ……….. ……….. ……….. ……….. 365
Home Office …………………….. ……….. 32,250 (a) 32,260 ……….. ……….. ……….. ……….. ………..
Capital Stock …………………… 65,000 ……….. ……….. ……….. ……….. ……….. ……….. 65,000
Sales ……………………………… 44,850 20,000 ……….. ……….. ……….. 64,850 ……….. ………..
Shipments to Branch …………... 8,500 ……… Problem V
SPENCER CO.
Work Sheet for Combined Statements for Home Office and Branch
December 31, 20x5

Adjustments Income Balance

Home and Eliminations Statement Sheet
Office Branch Dr. Cr. Dr. Cr. Dr. Cr.

Debits
Cash …………………………………….. 10,350 2,650 ……….. ……….. ……….. ……….. 13,100 ………..
Cash in Transit …………………………. 1,500 …….. ……….. ……….. ……….. ……….. 1,500 ………..
Accounts Receivable ………………. 26,200 12,850 ……….. ……….. ……….. ……….. 39,050 ………..
Merchandise Inv. Dec 1 ……………. 31,500 14,400 (c) 2,000 43,900 ……….. ……….. ……….. ………..
Store Supplies …………………………. 380 300 ……….. ……….. ……….. ……….. 580 ………..
Prepaid Expenses ……………………. 350 120 ……….. ……….. ……….. ……….. 470 ………..
Furniture & Fixtures …………………… 8,500 3,600 ……….. ……….. ……….. ……….. 12,700 ………..
Branch…………………………………… 32,260 ……… (a) ……….. 32,260 ……….. ……….. ……….. ………..
Retained Earnings ……………………. 6,850 ……… ……….. ……….. ……….. ……….. 6,850 ………..
Purchases ………………………………. 27,600 4,100 ……….. ……….. ……….. ……….. ……….. ………..
Shipments from Home Office ………………… 10,200 (b) 10,200 ……….. ……….. ……….. ……….. ………..
Advertising Expense …………………. 2,850 2,800 ……….. 5,650 Accounts Payable ……………… 36,400 4,200 ………..
……….. ……….. ……….. ……….. 39,000
Accrued Expenses ……………... 260 105 ……….. ……….. ……….. ……….. ……….. 365
Home Office …………………….. ……….. 32,250 (a) 32,260 ……….. ……….. ……….. ……….. ………..
Capital Stock …………………… 65,000 ……….. ……….. ……….. ……….. ……….. ……….. 65,000
Sales
Branch…………………………………… 32,260 ……… (a) ……….. 32,260 ……….. ……….. ……….. ………..
Retained Earnings ……………………. 6,850 ……… ……….. ……….. ……….. ……….. 6,850 ………..
Purchases ………………………………. 27,600 4,100 ……….. ……….. ……….. ……….. ……….. ………..
Shipments from Home Office ………………… 10,200 (b) 10,200 ……….. ……….. ……….. ……….. ………..

Advertising Expense …………………. 2,850 2,800 ……….. 5,650