Advanced Accounting Part II Quiz 1 Home Office and Branch Accounting

8/19/2019 Advanced Accounting Part II Quiz 1 Home Office and Branch Accounting

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HOME OFFICE, AGENCY AND BRANCH

1. On November 2, 2015, L Sion Com!"n# $re"%e& "n "'en$# in D"v"o, "n&%r"n(erre& mer$)"n&ie "m!*e $o%in' +15,000, e-i!men% or%)+/,000 "n& " $") orin' (-n& o( +10,000 %o be m"in%"ine& on "nim!re% b"i. )e "'en$# %r"nmi%%e& %o %)e )ome o3$e "*e or&er

)i$) ere bi**e& "% +40,000 o( )i$) +,550 " $o**e$%e& ne% o( " 26&i$o-n%. )e "'en$# "*o !"i& (or i% o!er"%in' e7!ene o( +8,500in$*-&in' -!!*ie o( +2,000. )e "'en$# re$eive& re!*eni)men% %)ereo( (rom %)e )ome o3$e be(ore %)e #e"r en&e&. On De$ember /1, %)e "'en$#"m!*e ere e%im"%e& %o be -e(-* over " !erio& o( 5 mon%) )i*e %)ee-i!men% i e%im"%e& %o )"ve " -e(-* *i(e o( ei')% #e"r. 9n-e&-!!*ie on De$ /1 "mo-n%e& %o +1,000. Home o3$e m"in%"in " 'ro!ro:% r"%e o( 256 o( $o%.

". Ho m-$) i "'en$# !ro:% "% %)e en& o( De$ember; b. Give %)e "'en$# re"* "$$o-n% %)"% i** be !reen%e& in %)e De$. /1

b"*"n$e )ee%.

b. Give %)e $o% o( "*e o( Home O3$e i( i% Inven%or# on Nov 2 i+1,250,000 )i*e on )"n& "% De$ /1 en% &on %o 206 o( %o%"* %o$ .Ne% !-r$)"e " +2,850,000 in$*-&in' (rei')% o( +50,000.

2. Ce*e%i"* Cor!or"%ion )o %)e (o**oin' b"*"n$e )ee% "$$o-n% " "%


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m?+o*i$# on &o-b%(-* "$$o-n% " %o be m"in%"ine& b"e& on %)e !revio-r"%e.

Re-ire&= 1? En%rie %o re$or& %r"n"$%ion "? %o m? in !"r"**e* $o*-mn. 2? C*oin' En%rie one en%r# %o $*oe "** %)e nomin"* "$$o-n%?

in$*-&in' e% -! o( inven%or# !er $o-n%= Home O3$e +85,500 "n&

Br"n$) +1/0,850. /? +reen% %)e +*"n% Ae% e$%ion o( %)e S%"%emen% o( Fin"n$i"*+oi%ion o( %)e Home O3$e.

? +reen% %)e In$ome %"%emen% o( %)e Home O3$e "n& %)eBr"n$) -in' %)e

(o**oin' (orm"%=

In$ome S%"%emen% Home O3$e Br"n$)

Combine&

S"*e

Le S"*e Di$o-n% ? ? ?

Ne% S"*e

Co% o( S"*e=

Inven%or#, Be'innin'

Ne% +-r$)"e

S)i!men% (rom Home

O3$e

Frei')% In

o%"*

S)i!men% %o br"n$)

?

Inven%or#, En&in'

?

?

?

Gro +ro:%

Le O!er"%in' E7!ene=

B"& Deb%

?

?

?

De!re$i"%ion

?

?

?

9%i*i%ie

?

?

?

O%)er o!er"%in' e7!ene


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? ? ?

Ne% +ro:% (rom O!er"%ion

Br"n$) +ro:% Lo?

Lo on Br"n$) r"n(er

Ne% +ro:% + + +

SOLUTION 3BAC

Home Office, Agency and Branch

1. a) Income & !"en#e S$mmary %. Real Accounts

Sam"'e# U#ed (,

S$""'ie# 1,

Sa'e# *,

Agency Sam"'e#

+ *,

Co# of Sa'e# -, /or0ing $nd, 2o Agency 1,

2e"reciaion -4 S$""'ie#, 2oAgency 1,

Oher e!"en#e# 4,4 5$i"men, 2oAgency + 3(,

Sa'e# di#co$n *4 Acc$m 2e"n 6 -4) 34,4

Balance 3,800 c. Home Office Co# of Sa'e#

7.Inenory, No

Ne +$rcha#e#

reigh In

+1,4,

,-,

4,

Shi"men# 6 8-,)

Inenory, 2ec 31 68,)

+3,113,

2. Home Office Books Branch Books

Ine#men in %ranch ((, Ca#h 14,

Ca#h 1(, reigh In 1, Shi"men# o Branch 4, Shi"men# from H.O. 4,

Home office 5$iy ((,

$rn & i!, Branch -4, Home Office 5$iy -4,

Ine#men in Branch -4, Ca#h -4,

Ine#men in Branch (, Acc 9eceia%'e (,

Acc# 9eceia%'e (, Home Office 5$iy (,

Acc# receia%'e 1,8(4, Acc# 9eceia%'e (44,

Sa'e# 1,8(4, Sa'e# (44,

Ca#h 1,7**,7 Ca#h 4(4,

Sa'e# 2i#co$n 3,(

Acc#. 9eceia%'e 1,43, Acc# 9eceia%'e 4(4,

+$rcha#e# -*, +$rcha#e# 14,

Acc# +aya%'e -*, Acc# +aya%'e 14,

Acc# +aya%'e -74, Acc# +aya%'e *1,4

Ca#h -74, Ca#h 88,-44

+$rcha#e 2i#co$n ,-74

O"eraing !"en#e# ,-4 O"eraing !"en#e# 131,4Accr$ed !"en#e# -,4 Ca#h 131,4


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Ca#h 3,

Shi"men# o Branch -4, Home office 5$iy -8,

reigh 'o## 3, Ca#h 1,4

Ine#men in Branch -8, reigh In 1,4 Shi"men# from HO -4,

Sa'e# 2i#co$n 1, Home office 5$iy 1,

Ine#men in Branch 1, Ca#h 48,8

Acc#. 9eceia%'e (,

Ine#men In Branch 11,8-4 O"eraing !"en#e# 11,8-4

O"eraing !"en#e# 11,8-4 Home Office 5$iy 11,8-4

Ca#h 3-,*4 Home Office 5$iy 3-,*4

Ine#men in Branch 3-,*4 Ca#h 3-,*4

Ine#men in Branch ,4 2e"reciaion !"en#e ,4

Acc$m2e"n,$rn

&i!$re#,Branch ,4

Home Office 5$iy

-4, ! 1: ! 3;1

,4

2e"reciaion !"en#e ,4

Acc 2e"n,$rn & i! ,4

-4, ! 1:! 3;1

Ui'iy !"en#e (-,4 Ui'iy !"en#e 18,4

Ui'iy +aya%'e (-,4 Ui'iy +aya%'e 18,4

Bad 2e%# 8,4 Bad 2e%# ,- A''o31,4 *, ! .3

Inenory, nd -84,4 Inenory, nd 13,-4

Sa'e# 1,8(4, Sa'e# (44,

Shi"men# o Branch 74, +$rcha#e 2i#co$n ,-74

Inenory Beg 1,3, Bad 2e%# ,-

+$rcha#e# -*, Shi"men# from H.O 74,

Bad 2e%# 8,4 +$rcha#e# 14,

2e"reciaion ,4 reigh In 8,4 Sa'e# 2i#co$n 31,8 2e"reciaion ,4

Oher O"eraing !"en#e# 1,8-4 Oher O"eraing !" 173,14 Ui'iy !"en#e (-,4 Ui'iy !"en#e 18,4

Income and !"en#e S (77,4-4 Income & !"en#e S 38,7

Ine#men in Branch 38,7 Income & !"en#e S 38,7

Branch Inc & !" S$m= 38,7 Home Office 5$iy 38,7

Branch Income & !"en#e 38,7

Inc & !" S$mmary 34,7

reigh Lo## 3,

Income & !"en#e S (-*,**4

9eained arning# (-*,**4

9e5. 3 $rni$re & i!$re# -4,

Acc$m 2e"reciaion 11(,4 (33,-4

$rni$re & i!$re#>Bag$io -4,

Acc$m 2e"reciaion ,4 -,-4

Toa' +-(,4


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Income Saemen Home Office Branch Com%ined

Sa'e# 1,8(4, (44, ,4,

Le## 2i#co$n#,re$rn#,a''o


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HOME OFFICE, AGENCY AND BRANCH

1. On November 2, 2015, L Sion Com!"n# $re"%e& "n "'en$# in D"v"o, "n&%r"n(erre& mer$)"n&ie "m!*e $o%in' +15,000, e-i!men% or%)+/,000 "n& " $") orin' (-n& o( +10,000 %o be m"in%"ine& on "nim!re% b"i. )e "'en$# %r"nmi%%e& %o %)e )ome o3$e "*e or&er)i$) ere bi**e& "% +40,000 o( )i$) +,550 " $o**e$%e& ne% o( " 26

&i$o-n%. )e "'en$# "*o !"i& (or i% o!er"%in' e7!ene o( +8,500in$*-&in' -!!*ie o( +2,000. )e "'en$# re$eive& re!*eni)men% %)ereo( (rom %)e )ome o3$e be(ore %)e #e"r en&e&. On De$ember /1, %)e "'en$#"m!*e ere e%im"%e& %o be -e(-* over " !erio& o( 5 mon%) )i*e %)ee-i!men% i e%im"%e& %o )"ve " -e(-* *i(e o( ei')% #e"r. 9n-e&-!!*ie on De$ /1 "mo-n%e& %o +1,000. Home o3$e m"in%"in " 'ro!ro:% r"%e o( 20% o( $o%.

". Ho m-$) i "'en$# !ro:% "% %)e en& o( De$ember; b. Give %)e "'en$# re"* "$$o-n% %)"% i** be !reen%e& in %)e De$. /1

b"*"n$e )ee%. b. Give %)e $o% o( "*e o( Home O3$e i( i% Inven%or# on Nov 2 i

+1,250,000 )i*e on )"n& "% De$ /1 en% &on %o 206 o( %o%"* %o$ .Ne% !-r$)"e " +2,850,000 in$*-&in' (rei')% o( +50,000.

2. Ce*e%i"* Cor!or"%ion )o %)e (o**oin' b"*"n$e )ee% "$$o-n% " "%


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&? S-mm"r# o( "$$o-n% "*e "n& $o**e$%ion? (or %)e -"r%er = HomeO3$e +1,5,000 "n&1,44,00 ne% o( " 4% &i$o-n%? "n& (or %)e Br"n$) +55,000+55,000?.e? S-mm"r# o( "$$o-n% !-r$)"e "n& !"#men%?= Home O3$e

+840,000 "n& +85,000?

"n& (or %)e Br"n$) +150,000 "n& +,855 ne% o( " /6 &i$o-n%?. (? O!er"%in' E7!ene !"i& in$*-&in' "$$r-e& e7!ene, i( "n#

Home O3$e, +2/0,000 "n& Br"n$), + 1/1,250. '? Re%-rn (rom %)e ori'in"* )i!men% "mo-n%e& %o +85,000. Frei')% onre%-rn " !"i&

b# %)e br"n$). A**o$"%e& (rei')% "n& (rei')% !"i& b# br"n$) ere "**$)"r'e& %o )ome o3$e " " *o "$$o-n%.

n? From %)e B"'-io "$$o-n% %-rne& over in $?, $o**e$%ion ere m"&e"$$or&in'*# *e " &i$o-n% o( 26 )i$) %)e br"n$) $)"r'e& %o %)e)ome o3$e.

o?+11,85 o( %)e e7!ene !"i& b# )ome o3$e in (? ere $)"r'e& %o %)ebr"n$).

!? C") remi%%"n$e " m"&e b# %)e br"n$) in e7$e o( ori'in"* $")%r"n(er.

? De!re$i"%ion " re$or&e& "% " r"%e o( 126.r? 9n!"i& -%i*i%# bi**= +8,500 (or )ome o3$e "n& +1,500 (or %)e br"n$).? +o*i$# on &o-b%(-* "$$o-n% " %o be m"in%"ine& b"e& on %)e !revio-

r"%e.

Re-ire&= 1? En%rie %o re$or& %r"n"$%ion "? %o m? in !"r"**e* $o*-mn. 2? C*oin' En%rie one en%r# %o $*oe "** %)e nomin"* "$$o-n%?

in$*-&in' e% -! o( inven%or# !er $o-n%= Home O3$e +85,500 "n&Br"n$) +1/0,850.

/? +reen% %)e Ae% e$%ion o( %)e S%"%emen% o( Fin"n$i"* +oi%ion

o( %)e Home O3$e, Br"n$) "n& Combine&.? +reen% %)e In$ome %"%emen% o( %)e Home O3$e "n& %)eBr"n$) -in' %)e

(o**oin' (orm"%=

Saemen of inancia' +o#iion Home Office Branch Com%ined

A##e#

Ca#h

Acco$n# 9eceia%'e

A''o


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SOLUTION 3AAc Home Office, Agency and Branch

1. a) Income & !"en#e S$mmary %. Real Accounts

Sam"'e# U#ed (,

S$""'ie# 1,

Sa'e# *, Agency Sam"'e# + *,

Co# of Sa'e# -4, /or0ing $nd, 2o Agency 1,

2e"reciaion -4 S$""'ie#, 2oAgency 1,

Oher e!"en#e# 4,4 5$i"men, 2oAgency + 3(,

Sa'e# di#co$n *4 Acc$m 2e"n 6 -4) 34,4

Balance 800 c. Home Office Co# of Sa'e#

7.Inenory, No

Ne +$rcha#e#

reigh In

+1,4,

,-,

4,

Shi"men# 6 *,)

Inenory, 2ec 31 68,)+3,11,

2. Home Office Books Branch Books

Ine#men in %ranch ((, Ca#h 14,

Ca#h 1(, reigh In 1,

Shi"men# o Branch 4, Shi"men# from H.O. 4,

Home office 5$iy ((,

$rn & i!, Branch -4, Home Office 5$iy -4,

Ine#men in Branch -4, Ca#h -4,

Ine#men in Branch (, Acc 9eceia%'e (, Acc# 9eceia%'e (, Home Office 5$iy (,


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Acc# receia%'e 1,8(4, Acc# 9eceia%'e (44,

Sa'e# 1,8(4, Sa'e# (44,

Ca#h 1,7**,7 Ca#h 4(4,Sa'e# 2i#co$n (,7-4

Acc#. 9eceia%'e 1,4(1,8-4 Acc# 9eceia%'e 4(4,

+$rcha#e# -*, +$rcha#e# 14,

Acc# +aya%'e -*, Acc# +aya%'e 14,

Acc# +aya%'e -74, Acc# +aya%'e *1,4

Ca#h -74, Ca#h 88,-44

+$rcha#e 2i#co$n ,-74

O"eraing !"en#e# ,-4 O"eraing !"en#e# 131,4

Accr$ed !"en#e# -,4 Ca#h 131,4

Ca#h 3,

Shi"men# o Branch -4, Home office 5$iy -8,

reigh 'o## 3, Ca#h 1,4

Ine#men in Branch -8, reigh In 1,4

Shi"men# from HO -4,

Sa'e# 2i#co$n 1, Home office 5$iy 1,

Ine#men in Branch 1, Ca#h 48,8

Acc#. 9eceia%'e (,

Ine#men In Branch 11,8-4 O"eraing !"en#e# 11,8-4

O"eraing !"en#e# 11,8-4 Home Office 5$iy 11,8-4

Ca#h 3-,*4 Home Office 5$iy 3-,*4

Ine#men in Branch 3-,*4 Ca#h 3-,*4

Ine#men in Branch 3,-4 2e"reciaion !"en#e 3,-4

Acc$m2e"n,$rn

&i!$re#,Branch 3,-4

Home Office 5$iy

-4, ! 1: ! 4;1

3,-4

2e"reciaion !"en#e 74, Acc 2e"n,$rn & i! 74,

-4, ! (:


Ui'iy +aya%'e (-,4 Ui'iy +aya%'e 18,4

Bad 2e%# -,*3 Bad 2e%# ,-

A''o31,4 *, ! .3

Inenory, nd -84,4 Inenory, nd 13,-4

Sa'e# 1,8(4, Sa'e# (44,

Shi"men# o Branch 74, +$rcha#e 2i#co$n ,-74

Inenory Beg 1,3, Bad 2e%# ,- +$rcha#e# -*, Shi"men# from H.O 74,

Bad 2e%# -,*3.-4 +$rcha#e# 14,

2e"reciaion 74, reigh In 8,4

Sa'e# 2i#co$n (3,(-4 2e"reciaion 3,-4 Oher O"eraing !"en#e# 1,8-4 Oher O"eraing !" 173,14


Income and !"en#e S 4*1,14(.4 Income & !"en#e S 3(,*

Ine#men in Branch 3(,* Income & !"en#e S 3(,*

Branch Inc & !" S$m= 3(,* Home Office 5$iy 3(,*

Branch Income & !"en#e 3(,* Inc & !" S$mmary 33,*


10/11

reigh Lo## 3,

Income & !"en#e S (4,-(.4

9eained arning# (4,-(.4

9e5$iremen 3

Ba'ance Shee Home Office Branch Com%ined A##e#Ca#h 1,1(8,84. 14, 1,318,84Acco$n# 9eceia%'e 1,*3,14. 11,4 1,74,(4

A''o< for Bad 2e%# 638,-*3.-4) 1,47,331.

4

64,(4) 1(,8-4 677,718.-4) 1,3(1,(.4

Inenory -84,4. 13,-4 *1(,4

Ine#men in Branch 3(*,4.

$rni$re and i!$re# -4,. -4,.

Acc$m$'aed 2e"n 138,-4. (11,4. 6138,-4) (11,4.

$r & i!$re#>Branch -4,.

-4,.

Acc$m 2e" $r & i! Br 3,-4. -1,4. @@@@@@@ 3,-4. -1,4.Toa' A##e# 4,260,206.2

5

387,625 4,278,78.25

Income Saemen Home Office Branch Com%inedSa'e# 1,8(4, (44, ,4,

Le## 2i#co$n#,re$rn#,a''o


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Advanced Accounting Part II Quiz 1 Home Office and Branch Accounting

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Transcript of Advanced Accounting Part II Quiz 1 Home Office and Branch Accounting