Advance Accounting: Home Office Books and Office Books

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CHAPTER 9
SUGGESTED ANSWERS

EXERCISES

Exercise 9 - 1

Books of Branch R
|Home Office |15,000 | | | Cash | |15,000 |

Books of Branch S
|Cash |15,000 | | | Home Office | |15,000 |

Books of the Home Office
|Branch S |15,000 | | | Branch R | |15,000 |

Exercise 9 - 2
Books of Branch No. 1
|Home Office |1,950 | | | Shipments from Home Office | |1,600 | | Freight-In | |350 |

Books of Branch No. 5
|Shipments from Home Office |1,600 | | |Freight-In |400 | | | Cash | |350 | | Home Office | |1,650 |

Books of the Home Office
|Branch No. 5 |1,650 | | |Excess Freight |300 | | | Branch No. 1 | |1,950 |

Exercise 9 – 3

Home Office Books

| 1. |no entry | | | | | | | | |2. |Branch |360,000 | | | | Shipments to Branch | |240,000 | | | Allowance for Markup in Branch Inventory | |120,000 | | | 120,000/240,000 = 50% | | | | | | | | |3. |no entry | | | | | | | | |4. |Branch |134,000 | | | | Advertising Expense...
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