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Group Ass AFA I

This document outlines an individual assignment for 4th year Accounting and Finance students at Unity University, focusing on transactions related to the Wolkite branch of East Africa PLC for the year 2014. Students are required to journalize transactions, determine ledger balances, and prepare financial statements while adhering to a periodic inventory system. The assignment must be submitted by January 12, 2025, and is marked out of 15%.

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3 views

Group Ass AFA I

This document outlines an individual assignment for 4th year Accounting and Finance students at Unity University, focusing on transactions related to the Wolkite branch of East Africa PLC for the year 2014. Students are required to journalize transactions, determine ledger balances, and prepare financial statements while adhering to a periodic inventory system. The assignment must be submitted by January 12, 2025, and is marked out of 15%.

Uploaded by

tsedenyayordanos
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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UNITY UNIVERSITY

DEPARTMENT OF ACCOUNTING AND FINANCE

Individual assignment

Course-Advanced Financial Accounting I (ACFN 401)

Target group: 4th Year AcFn Regular Students


Requirements
 Legible and neat Page format will be rewarded.
 Strictly follow the instruction given below.
 The assignment paper is to be submitted on January 12, 2025 Via Soft copy.
 Clear and observable computation is required
 The paper will be marked out of 15%.
 Doing this assignment negligently will reduce your point.
East Africa PLC open new branch at wolkite city municipality last year (2013).
The company shipped inventory to branch by 25% above cost. Wolkite
branch ending inventory on Dec 31,2013 is 40,000 at billed price and cash is
also 100,000. The following is transaction related to Wolkite branch for year
2014.

1. Home office send cash to Wolkite branch is 35,000.


2. Wolkite branch purchase equipment costing 60,000 on cash and the
equipment is accounted for home office.
3. Home of shipped merchandized to Wolkite branch costing 500,000 with
25% above cost billed price.
4. Wolkite branch sold merchandise for Br. 350,000 in cash and 50,000 on
account.(its 60% merchandize available for sales)
5. Wolkite branch paid operating expenses Br. 18,000.
6. Wolkite branch collected Br. 20,000 on account.
7. Wolkite branch sends Cash Br. 50,000 to home office.

Home of financial report for 2014 is as follows:

Required: By assuming the company use periodic inventory system

A. Journalize the above transaction both on book of home office and


branch.
B. Determine the ledger balance of reciprocal account.
C. Determine the flow of merchandize from head office to branch.
D. Determine the ending balance of Allowance for overvaluation of
inventory branch account.
E. Prepare financial statement for branch.
F. Complete the working paper and prepare the combined financial
statement.
G. Journalize adjusting and closing entry

Trail balance Eliminations


Account title HO Branch Dr. Cr. Combined
Income statement statement
Sales 800,000 400,000
Inventory jan1, 2014 420,000 40,000
Purchase 800,000
Shipments to branch (500,000)
Shipments from HO 625,000
Inventories, Dec 31,2014 (150,000) (266,000)
Operating Expenses (180,000) (18,000)
Net Income, carry forward 50,000 (17,000)
Statement of Retained Earning
Dec 31,2013 Retained earnings 140,000
Net Income- from above 50,000 (17,000)
Dividends Declared 80,000
Dec 31,2014 Retained earnings 110,000 (17,000)
Balance Sheet
Cash 140,000 377,000
Accounts Receivable 168,000 30,000
Inventories 50,000 266,000
Investment in Branch 690,000
Allowance for over valuation (133,000)
Equipment 150,000
Accumulated Depreciation- (10,000)
Equipment
Total asset 1,055,000 673,000
Notes payable 300,000
Account payable 280,000
Home office 690,000
Common shares,10 par value 365,000
Dec 31, 2014 Retain earning 110,000 (17,000)
Total liab. and shareholders’ equity 1,055,000 673,000

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