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Home Office Branch Dr Cr Dr

Debits

Cash $15,000 $2,000 7000

Accounts receivable 20000 17000

Inventory - Dec 31, 1967 30000 8000 7000

Fixed Asset - net 150000

Branch Office current account 44000

Cost of Sales 220000 93000 313000

Expenses 70000 41000 e) 1000 112000

Total $549,000 $161,000erc an se pmen rom ome

office $105,000 a) 105000

CreditsAccounts Payable 23000

Mortgage Payable 50000

Capital Stock 100000

Retained earnings - Jan 1, 1967 26000

Sales 350000 150000 b) 84000

Accrued Expenses 2000 e) 1000

Home Office Current Account 9000

Total 549000 161000

Merchandise shipment to branch a) 84000 b) 84000

Allowance for Overvaluation of

Branch Mdse a) 21000

425000

Net Income To Retained Earning -9000

416000

Adjustments &

Eliminations Income S

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Cr Dr Cr Dr Cr

$10,000

37000

31000

150000

23000

50000

100000

26000

416000

416000 0 26000 228000 173000

29000

454000

69000 55000

69000 55000 228000 228000

atement Retained Earnings Balance Sheet

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1 Branch 105000 Merc

84000

Allowance for Overvaluation of Branch Mdse 21000

2

4 Expen

5 Cash 10000 Home

Branch 10000

6 Expen

Merchandise Shipment to Branch

Home Office

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andise Shipment from Home office 105000

Home Office 105000 Allowance for Overvaluation

Merchandise Shipmen

Sales

se 12000

Cash 12000

Office 10000

Cash 10000

se 3000 Expense

Accrued Expense 3000 Accrued Expense

Branch

Merchandise Shipment to Bra

Merchandise Shipmen

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84000

f Branch Mdse 21000

from Home office 105000

8400084000

1000

1000

nch

to Branch

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Home

OfficeBranch

Dr Cr Dr Cr

Debits

Cash $15,000 $2,000 7000

Accounts receivable 20000 17000

Inventory - Dec 31, 1967 30000 8000Fixed Asset - net 150000

Branch Office current account 44000 3000

Cost of Sales 220000 93000

Expenses 70000 41000 12000

Merchandise Shipment from Home

office$84,000

84000

Total $549,000 $161,000

Credits

Accounts Payable 23000

Mortgage Payable 50000

Capital Stock 100000

Retained earnings - Jan 1, 1967 26000

Sales 350000 150000 84000

Accrued Expenses 2000 12000

Home Office Current Account 9000 3000

Total 549000 161000

Merchandise shipment to branch 131250 131250

Allowance for Overvaluation of

Branch Mdse a) 21000

0 0Net Income To Retained Earning 0

0 454000

Adjustments & Income Statement

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