Apple Corporation has operated a branch in Cavite for one year. Shipments are billed to the branch at cost. The branch carries its own accounts receivable, makes its own collections, and pays its own expenses. The branch reported an inventory on December 31, 2021: Outsiders, P3,391; Home office, P7,625 The transactions for the year are given effect to in the trial balance below: Debit P 5,040 Accounts Credit Cash Home Office Current P 21,000 25.000 Purchases from outsiders Shipments from Home Office Accounts receivable Expenses...... Interest expense. 56,216 15,360 7,500 684 Gain on sale of equipment. Sales 8,800 80.000 P109.800 P109.800 1. Determine the net profit of the Cavite Branch for 2021 2. Using the same information above, determine the branch current account in the Home Office books on January 1, 2022. 3. Using the same information above, shipments to Branch account in the Home Office books on January 1, 2022.
Apple Corporation has operated a branch in Cavite for one year. Shipments are billed to the branch at cost. The branch carries its own accounts receivable, makes its own collections, and pays its own expenses. The branch reported an inventory on December 31, 2021: Outsiders, P3,391; Home office, P7,625 The transactions for the year are given effect to in the
1. Determine the net profit of the Cavite Branch for 2021
2. Using the same information above, determine the branch current account in the Home Office books on January 1, 2022.
3. Using the same information above, shipments to Branch account in the Home Office books on January 1, 2022.
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