solution chapter 13 - advanced accounting ii 2014 by dayag

7/25/2019 Solution Chapter 13 - advanced accounting II 2014 by Dayag

1/30

Chapter 13

Problem ISales....................................................................................................................... 42,000

Shipments to Newark Branch................................................................ 35,000

Unrealized Intercompany Inentory !ro"t........................................... #,000$ost o% merchandise shipped t &ranch' !42,000().20* !35,000.

Shipments to Newark Branch............................................................................. +25Unrealized Intercompany Inentory !ro"t........................................................ )25

Sales et-rns...........................................................................................#50

$ost o% merchandise ret-rned &y &ranch' !#50().20* !+25.

Newark Branch Income..................................................................................... 2,+00Newark Branch.......................................................................................2,+00

Unrealized Intercompany Inentory !ro"t........................................................ 4,)25Newark Branch.......................................................................................4,)25

ecrease in Unrealized Intercompany Inentory !ro"t'Balance prior to ad/-stment, )2(3), !#,000 !)25............... !+,1#5Balance re-ired in acco-nt, )2(3),!)+,500 !)+,500().20........................................................... 2,#50ecrease.................................................................................... !4,)25

Newark Branch Income...................................................................................... ),525Income S-mmary....................................................................................),525

Problem IIa. Unrealized Intercompany Inentory !ro"t has a credit &alance o% !,450 &e%ore ad/-stment onecem&er 3), calc-lated as %ollows'

6erchandise trans%erred &y home o7ce at &illed price,358 a&oe cost !)+,200 pl-s !20,250............................................. !3+,4506erchandise trans%erred &y home o7ce at cost, !3+,450().35.... 2#,0009dditions to -nrealized pro"t acco-nt res-ltin: %rom trans%ers&y home o7ce..................................................................................... !,450

&. Unrealized Intercompany Inentory !ro"t.................................................. 4,550$ash....................................................................................................... 4,550

Balance o% -nrealized pro"t acco-nt at ecem&er 3)as calc-lated a&oe.......................................................................................................... ! ,450e-ired &alance, ecem&er 3), to red-ce inentory to cost';ndin: inentory o% merchandise shipped to &ranch &y home o7ce'9t &illed price................................................................................................. ! )1,009t cost ! )1,00().35.................................................................................. )4,000

4,00e-ired decrease in -nrealized pro"t acco-nt as a res-lt


2/30

o% &ranch sales......................................................................................................................!4,550

c. Branch Books'

he &ranch o7ce inentory as o% ecem&er ) considered o%' Shipments %rom otal inentory........................................................................................................... ! )5,000

?oods ac-ired %rom home o7ce and incl-ded in &ranch inentory at &illed price are calc-latedas %ollows'Balance o% -nrealized intercompany inentory pro"t, ecem&er 3).................... ! 3,+009dditions to -nrealized pro"t acco-nt d-rin: ecem&er, 208 o%shipments to &ranch 208 @ !1,000............................................................................. ),+00Balance o% -nrealized pro"t acco-nt, ecem&er ).................................................. ! 2,000

Balance o% -nrealized pro"t acco-nt, ecem&er ), !2,000 ( 208 mark-p oncost e-als ecem&er ) inentory at cost................................................................ ! )0,0009dd 208 mark-p........................................................................................................... 2,000?oods in &ranch inentory at &illed price................................................................. ! )2,000

&. Unrealized Intercompany Inentory !ro"t......................................... 2,200Branch Income............................................................................ 2,200

$alc-lation o% red-ction in Unrealized IntercompanyInentory !ro"t'Balance o% -nrealized pro"t acco-nt, ecem&er 3).........................! 3,+00e-ired &alance, ecem&er 3), to red-ce inentory to cost9t &illed price................................................................... !1,4009t cost !1,400().20....................................................... #,000

),400e-ired decrease in -nrealized pro"t acco-nt as a res-lto% &ranch sales........................................................................................ ! 2,200

Problem IV) ec.3) Sellin: ;@penses............................................................................ 2+0

Store S-pplies............................................................................ 2+0 S-pplies -sed' !400 !)40, or !2+0.

3) Sellin: ;@penses............................................................................ 109cc-m-lated epreciationAStore -rnit-re........................ 10

epreciation')8 o% !1,000, or !10.


3/30

3) Sellin: ;@penses............................................................................ )209ccr-ed ;@penses !aya&le................................................. )20

3) !repaid Sellin: ;@penses............................................................. )50

Sellin: ;@penses..................................................................... )503) Income S-mmary......................................................................... )+,0006erchandise S-mmary......................................................... )+,000

3) 6erchandise S-mmary................................................................. )+,50Income S-mmary...................................................................... )+,50

3) Notes !aya&le..................................................................................),000


4/30

Income S-mmary............................................................. ),#50

Problems V

)S!;N$; $=.

Balance Sheet %or Branchecem&er 3),20@4

9ssetsCia&ilitiesDDDDDDDDDDDDDDDDDDDD

$ash..................................................... ! 2,+50 9cco-nts paya&le...................................! 4,2009cco-nts receia&le........................ )2,150 9ccr-ed e@penses...................................)056erchandise inentory..................... )4,+00


5/30

Net loss...................................................................................................................................... !3,02)

S!;N$; $=.Balance Sheet %or


6/30

Net income %rom own operations......................................................................................... !3,+45Cess' Branch net loss................................................................................................................),2#)

>otal income............................................................................................................................ !

2,3#4

2. WORKSHEET refer to a separate sheetS!;N$; $=.

$om&ined Balance Sheet %or


7/30

a Branch Books

ec 3) Income S-mmary FFFFFFFFFFFFFFFFF.. )4,4006erchandise Inentory FFFFFFFFFFF.. )4,400

3) 6erchandise Inentory FFFFFFFFFFFFFFF )4,+00Income S-mmary FFFFFFFFFFFFFF. )4,+00

3) Store S-pplies ;@pense FFFFFFFFFFFFFFF. 210Store S-pplies FFFFFFFFFFFFFFFF 210

Store s-pplies -sed' !510 !300, or !210

ec. 3) !repaid ;@penses FFFFFFFFFFFFFFFFFFF )206iscellaneo-s ?eneral ;@pense FFFFFFFF. )20

3) 6iscellaneo-s ?eneral ;@pense FFFFFFFFFFFF )059ccr-ed ;@penses FFFFFFFFFFFFFF.. )05

3) epreciation ;@pense G FFFFFFFFFFFFF.. 3+9cc-m-lated epreciation FFFFFFFFFF 3+

epreciation' )8 o% !3,+00

3) 6iscellaneo-s ?eneral ;@pense FFFFFFFFFFF.. 220


8/30

3) !repaid ;@pense FFFFFFFFFFFFFFFFFFF 3506iscellaneo-s ?eneral ;@pense FFFFFFFF 350

3) 6iscellaneo-s ?eneral ;@pense FFFFFFFFFFF.. 2+0

9ccr-ed ;@penses FFFFFFFFFFFFFF. 2+0

3) epreciation ;@pense FFFFFFFFFFFFFFFF.. 159cc-m-lated epreciation G FFFFFFF. 15

epreciation' )8 o% !1,500, or !15

3) $ash in >ransit FFFFFFFFFFFFFFFFFFF. ),500Branch FFFFFFFFFFFFFFFFFFF ),500

3) Sales FFFFFFFFFFFFFFFFFFFFFFF 44,150Shipments to &ranch FFFFFFFFF....................... 1,500

Income S-mmary FFFFFFFFFFFFF. 53,350

ec 3) Income S-mmary FFFFFFFFFFFFFFFFFF 42,405!-rchases FFFFFFFFFFFFFFFFFF 2#,+009dertisin: ;@pense FFFFFFFFFFFFF. 2,150Salaries and $ommissions ;@pense FFFFFF. 4,250Store S-pplies ;@pense FFFFFFFFFFFF 5+06iscellaneo-s Sellin: ;@pense FFFFFFFF.. ),150ent ;@pense FFFFFFFFFFFFFFFF. 2,#00epreciation ;@pense G FFFFFFFFF. 156iscellaneo-s ?eneral ;@pense FFFFFFF. 2,5)0

3) Branch Income FFFFFFFFFFFFFFFFFF.. 3,02)Branch FFFFFFFFFFFFFFFFFFF 3,02)

3) Unrealized Intercompany Inentory !ro"t FFFFFF. ),#50Branch Income FFFFFFFFFFFFFFF ),#50$alc-lation o% -nrealized pro"t ad/-stment'Balance o% -nrealized pro"t acco-nt,

ecem&er 3) FFFFFFFFF.. !3,#00Inentory merchandise receied %rom


9/30

).BranchCurrent

H. OfceCurrent

Unad/-sted &alance, )2(3)(20@4 ! 44,000 ! ,0009dd ed-ct' 9d/-stments

) $ash in transit )0,000 2. 6erchandise in transit )0,000 3. Branch e@penses paid &y home o7ce )2,000 4. $ash in transit %rom home o7ce DDDDDDD 3,0009d/-sted &alance, )2(3)(20@4 ! 34,000 !34,000

2. $om&ined Income Statement Sales H!350,000 !)05,000 !)50,000FFF....................................................... !35,000 Cess' $ost o% :oods sold H!220,000 !14,000

!3,000 !3,+00 !2),000 !),200JFFFFFFFFFFFFFF. 2)0,400 ?ross pro"t...................................................................................................................!)14,+00 =peratin: e@penses !#0,000 !4),000 !)2,000................................................)23,000 Net income................................................................................................................... !+),+00

Problem VII)

!9K>=N $=.Income Statement %or ayton Branchor Lear ;nded ecem&er 3), 20@5

Sales.............................................................................................................................. !3)5,000$ost o% :oods sold'

6erchandise inentory, Man-ary ), 20@5................................... ! 44,500Shipments %rom home o7ce...................................................... 252,0006erchandise aaila&le %or sale................................................. !2+,500Cess' 6erchandise Inentory, ecem&er 3), 20@5.................. 51,500 231,000

?ross pro"t................................................................................................................. ! ##,000=peratin: e@penses................................................................................................. )0),500Net loss....................................................................................................................... ! 24,500

!9K>=N $=.Income Statement %or $incinnati


10/30

Net income %rom own operations............................................................................ ! 5,5009dd &ranch net income........................................................................................... )+,+50

>otal income............................................................................................................... !))2,)50

2

!9K>=N $=.$om&ined Income Statement %or


11/30

ed-ct &alance to remain in -nrealized pro"t acco-nt' Branch inentory, ecem&er 3),

ac-ired %rom home o7ce....................................... ! 51,500 Cess' $ost o% inentory to home o7ce,

!51,500().20................................................................ 41,#50 ,#50

ed-ction in -nrealized pro"t acco-ntA ad/-stment to&ranch income %or oerstatement o% cost o%:oods sold.................................................................. 4),)50

Branch Income............................................................................................................. )+,+50Income S-mmary............................................................................................

)+,+50

6erchandise Inentory, ecem&er 3)...................................................................... )42,500Sales............................................................................................................................... ),0+0,000Shipments to Branch.................................................................................................... 2)0,000

Income S-mmary.............................................................................................),4)2,500

Income S-mmary......................................................................................................... ),3)#,0006erchandise Inentory, Man-ary )................................................................

))5,000!-rchases.........................................................................................................

120,000;@penses...........................................................................................................

312,000

Income S-mmary.......................................................................................................... ))2,)50etained ;arnin:s............................................................................................

))2,)50

Problem VIII)

U??C;S $=.Income Statement %or Branch

or Lear ;nded ecem&er 3), 20@4

Sales................................................................................................................................ !#1,500$ost o% :oods sold'

6erchandise inentory, Man-ary ), 20@4......................................... ! 32,000Shipments %rom home o7ce........................................... ! 40,000!-rchases %rom o-tsiders................................................. 20,000 +0,0006erchandise aaila&le %or sale....................................................... ! 2,000Cess' 6erchandise Inentory, ecem&er 3), 20@4........................ 3),500

$ost o% :oods sold............................................................................. +0,500?ross pro"t.................................................................................................................... !)1,000=peratin: e@penses.................................................................................................... )2,500Net income................................................................................................................... ! 5,500

U??C;S $=.Income Statement %or


12/30

Sales.............................................................................................................................. !25+,000$ost o% :oods sold'

6erchandise inentory, Man-ary ), 20@4................................... ! 10,000!-rchases...................................................................................... 2)0,000

6erchandise aaila&le %or sale................................................. ! 20,000Cess' Shipments to &ranch.......................................................... 30,0006erchandise aaila&le %or own sales....................................... ! 2+0,000Cess' 6erchandise Inentory, ecem&er 3), 20@4.................. 55,000

$ost o% :oods sold............................................................................. 205,000?ross pro"t................................................................................................................... !5),000=peratin: ;@penses.................................................................................................... +0,000Net loss %rom own operations..................................................................................... ! ,0009dd &ranch net income............................................................................................ )3,500

>otal income................................................................................................................ ! 4,500

2

U??C;S $=.$om&ined Income Statement %or


13/30


14/30

2. $ash in transit ),100 3. Shipments in transit 5,1009d/-sted &alance, )2(3)(20@4 ! 5#,300 ! 5#,300

2. I!ome Statemet " #ra!h

Sales................................................................................................................................ !)40,000 $ost o% :oods sold'

6erchandise inentory, Man-ary ), 20@4 !)),550 !),000....... ! )0,550Shipments %rom home o7ce !)05,000 !5,000 !)0,000........ )00,000

rei:htAin !5,500 !250FFFFFFFFFFFFFFFFF.. 5,#506erchandise aaila&le %or sale..................................................... !))+,300Cess' 6erchandise Inentory, ecem&er 3), 20@4...................... )4,##0$ost o% :oods sold.............................................................................

)0),530 ?ross pro"t.................................................................................................................... !31,4#0 =peratin: e@penses....................................................................................................

24,300 Net income................................................................................................................... !)4,)#0

I!ome Statemet Home O$!e Sales.............................................................................................................................. !)55,000 $ost o% :oods sold'

6erchandise inentory, Man-ary ), 20@4................................... ! 23,000!-rchases...................................................................................... )0,0006erchandise aaila&le %or sale................................................. ! 2)3,000Cess' Shipments to &ranch.......................................................... )00,0006erchandise aaila&le %or own sales....................................... ! ))3,000

Cess' 6erchandise Inentory, ecem&er 3), 20@4.................. 30,000$ost o% :oods sold........................................................................13,000 ?ross pro"t................................................................................................................... !#2,000 =peratin: ;@penses....................................................................................................42,000 Net loss %rom own operations..................................................................................... !30,000 9dd &ranch net income............................................................................................)4,)#0 $om&ined net income.............................................................................................. !44,)#0

3.$om&ined Income Statement %or


15/30

6erchandise aaila&le %or sale.................................................. ! 22,300Cess' 6erchandise Inentory, ecem&er 3), 20@4................... 44,##0$ost o% :oods sold........................................................................

)14,530 ?ross pro"t.................................................................................................................... !

))0,4#0 =peratin: e@penses....................................................................................................++,300 Net income................................................................................................................... !44,)#0

Problem Xa. >he cost o% the merchandise destroyed was !30,000. >otal merchandise ac-ired %rom home o"ice, at &illed price' Inentory, Man-ary )...................................................................................... !2+,400 Shipments %rom home o7ce, Man. )A)#....................................................... 20,000

!4+,400

$ost o% :oods sold, Man-ary )A)#, at &illed price'Net sales, !)3,000().25...................................................................................... )0,4006erchandise on hand, Man-ary )#, at &illed price....................................... !3+,0006erchandise on hand, Man-ary )#, at cost, !3+,000().20............................ !30,000

&. Branch Books'Coss %rom ire or


16/30

rei:htInFFFFFFFFFFFFFFFFFFFFFFFF

350

&. Books o% &ranch No. 5'Shipments %rom r-e Branch Net Income ! #0,)00

4. a !30,000 @ 0,000 +0,000(0,000

5. a

+. d !50,000 !40,000(!40,000 * 258 mark-p on cost


17/30

#. c !410,000 !3+0,000 @ !10,000(!410,000 * !20,000

1. c !#00,000, since the pro&lem stated that the home o7ce ad/-sted the intracompany!ro"t e%erred acco-ntO and the amo-nt o% !#00,000 is the amo-nt o% net income in the

ad/-sted "nancial statements o% the home o7ce, and there%ore it is -nderstood to &ecom&ined net income.

. & Note to teachers: The Intercompany Proft Deerred amounting to P6,000 should

be in the column o Home !ce

eported -nad/-sted &ranch net income per &ranch &ooks FFFFFF..! 30,000Branch Income in so %ar as home o7ce is concerned per home o7ce &ooks. 50,000=eral-ation o% &ranch cost o% :oods soldFFFFFFFFFFFFFFFF! 20,000

$ost o% sales o%


18/30

Cess' 6I, endin: #5,000 $?S, at B! 4#5,000 K' 6arkA-p ratio 25()25 5,000

>r-e(9d/-sted(eal Branch Net Income !)0,000

)4. dSales !53#,500 !300,000FFFFFFFFFFFFFFFFFF.FFF. ! 13#,500Cess' $ost o% :oods sold 6erchandise inentory, &e:. H!50,000 !45,000 ( ).20J! 1#,500 9dd' !-rchasesFFFFFFFFFFFFFFFFFFF. 500,000 $ost o% ?oods 9aila&le %or SaleFFFFFFFFFF... ! 51#,500 Cess' 6I, endin: H!#0,000 !+0,000 ( ).20JFFFFFF. )20,000 4+#,500?ross pro"tFFFFFFFFFFFFFFFFFFFFFFFF. ! 3#0,000Cess' ;@penses !)20,000 !50,000..FFFFFFFFFFFF. )#0,000Net IncomeFFFFFFFFFFFFFFFFFFFFFFFF ! 200,000

)5. d=eral-ation o% $ost o% ?oods Sold'

Unrealized !ro"t in &ranch inentory( &e%ore ad/-stmentFFFFFF.! #,200

Cess' 9llowance o% endin: &ranch inentory !20,000 @ 148 *!)+,100 @ 20()20FFFFFFFFFFFFFFFFFFFFFF. 2,100

=eral-ation o% $ost o% ?oods SoldFFFFFFFFFFFFFF. F.! 4,400

9d/-sted &ranch net income'SalesFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF!+0,000Cess' $ost o% :oods sold'

Inentory, Man-ary ), 2003FFFFFFFFFFFF.! 30,0009dd' !-rchasesFFFFFFFFFFFFFFFF..... )),000 Shipments %rom home o7ceFFFFFFFF.. ),200$ost o% ?oods aaila&le %or saleFFFFFFFFF ! +0,200Cess' Inentory, ecem&er 3), 2003FFFFFFF. 20,000

40,200

?ross pro"tFFFFFFFFFFFFFFFFFFFFFFFFFFFFF.. ! ),200Cess' ;@pensesFFFFFFFFFFFFFFFFFFFFFFFFFFFF.. )2,000Unad/-sted &ranch net incomeFFFFFFFFFFFFFFFFFFFF.! #,1009dd' =eral-ation o% $ost o% ?oods SoldFFFFFFFFFFFFFF. 4,4009d/-sted &ranch net incomeFFFFFFFFFFFFFFFFFFFFF..! )2,000

)+. dBilled!rice

$ost 9llowance

6erchandise Inentory, )2(3)(2005 P! 3+,000 ! 30,000 ! +,000Shipments 21,100 24,000 4,100$ost o% :oods sold !)0,100

rom


19/30

Cess' Shipments %rom home o7ce at &illed pricePFFFFFFFFFF )2,000 6erchandise %rom o-tsidersFFFFFFFFFFFFFFFFFFFF! 3,000

)1. d $om&ined $ost o% ?oods Sold'

6erchandise Inentory, )()(2003'


20/30

o%


21/30

Less: 1/enses (P#&0,000 + P'0,000) 2 #-0,000 et nco4e P 3&6,000

2#. & Sales (P'3-,'00 + P300,000) P 3-,'00

Less: Cost of goods sold Merchandise inventory, eg!"P'0,000 + (P60,000%#!&0) P -,'00

dd: P*rchases '00,000 Cost of goods availale for sale P'-,'00 Less: M, ending

"P-0,000 + (P60,000%#!&0) #&0,000 $6-,'00 .ross /rofit P 3-0,000 Less: 1/enses (P#&0,000 + P'0,000) 2 #-0,000 et nco4e P &00,000

21. c

Sales !)20,000 !+0,000FFFFFFFFFFFFFFF ! )10,000

Cess' $ost o% :oods sold' 6erchandise inentory, &e:. H!40,000 !+,000 !24,000 ( ).2JFFFFFFFFFFFF ! ++,000

9dd' !-rchases !#0,000 !)),000FFFFFFF 1),000 $ost o% ?oods 9aila&le %or SaleFFFFFFFF! )4#,000 Cess' 6I, endin: H!40,000 !3,200 !)+,100 ( ).20J 5#,200 1,100?ross pro"tFFFFFFFFFFFFFFFFFFFFF ! 0,200Cess' ;@penses !21,000 !)2,000FFFFFFFFFF 40,000Net IncomeFFFFFFFFFFFFFFFFFFFF. ! 50,200

2. d Sales !)00,000 !33,000 !50,000FFFFFFFFFFFFFF ! ))#,000 Cess' $ost o% :oods sold'

Inentory, &e:. H!)5,000 !5,500())08 or !5,500 !500J !20,000 9dd' !-rchases !50,000 !#,000FFFFFFFFFFFF 5#,000 $=?9SFFFFFFFFFFFFFFFFFFFFFFFF.. !##,000 Cess' Inentory, end H!)),000 !),050

!+,000A !),050())08JFFFFFFFFFFFFFFF )+,550 +0,450 ?ross pro"tFFFFFFFFFFFFFFFFFFFFFFFFFF ! 5+,550 Cess' ;@penses !20,000 !+,000 !5,000FFFFFFFFFFFF 3),000 $om&ined Net incomeFFFFFFFFFFFFFFFFFFFF. ! 25,550

30. cSales P#'',000Less: Cost of Sales nventory, #%#%#0 P &3,000

P*rchases #90,000

Cost of goods availale for sale P,000Less: Shi/4ent%Sales to 5ranch,

at cost (P##0,000%##0) #00,000Cost of goods availale for 78

Sale P##3,000Less: nventory, #&%3#%#0 30,000 3,000

.ross /rofit P -&,000Less: 1/enses '&,000et inco4e ho4e office P &0,000


22/30

3). aSales P#$0,000Less: Cost of Sales nventory, #%#%#0 P ##,''0

P*rchases #0',000reight;in ','00Shi/4ent in transit (P',000+P&'0) ',&'0Cost of goods availale for sale P#&-,300Less: nventory, #&%3#%#0

(P#0,$00 + P'&0 + P',&'0) #6,#-0 ###,#30.ross /rofit P &,-0Less: 1/enses &,000et inco4e /er ranch oo 9,600et nco4e of ?avao 5ranch, ad=*sted P #0,$-0

5P Cost llo@anceM! #%#%&0#0 #,000Shi/4ents

##0,000 #00,000 >>#0,00

0vailale for sale ##,000;: M, #&%3#%#0 >>>#',$00 >>>>#,$00C.S 9,600

>>##0,000 1 #0%##0 >>>#0,$00 + ',000, in transit >>>>#',$00 1 #0%##0

32. anventory, #%# at illed /rice P#6',000dd: Shi/4ents at illed /rice ##0,000Cost of goods availale for sale at illed /rice P&-',000

Less: C.S at 5P: Sales P#69,000

Less: Sales ret*rns and allo@ances 3,-'0 Sales /rice of 4erchandise

acA*ired fro4 o*tsiders (P-,'00 % #&0) 9,000

et Sales of 4erchandise acA*ired fro4 ho4e office P#'6,&'0

1: nterco4/any cost ratio #00%#&' #&',000nventory, %#%&00 at illed /rice P#'0,000

1: Cost ratio #00%#&' Merchandise inventory at cost destroyed y fire P#&0,000

33. d rei:ht act-ally paid &y'

otalFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF! ),200 Cess' rei:ht that sho-ld &e recordedFFFFFFFFFFFFFFFFF.. 100 ;@cess %rei:htFFFFFFFFFFFFFFFFFFFFFFFFFFFFF! 400


23/30

34. d in arriin: at the cost o% merchandise inentory at the end o% the period, %rei:ht char:esare properly reco:nized as a part o% the cost. B-t a &ranch sho-ld not &e char:ed withe@cessie %rei:ht char:es when, &eca-se o% indirect ro-tin:, e@cessie costs are inc-rred.Under s-ch circ-mstances, the &ranch ac-irin: the :oods sho-ld &e char:ed %or no morethan the normal %rei:ht %rom the -s-al shippin: point. >he o7ce directin: the interA&ranch

trans%ers are responsi&le %or the e@cessie cost sho-ld a&sor& the e@cess as an e@pense&eca-se it represents mana:ement mistakes or ine7ciencies.

35. c Inentory o% the Branch'

Shipments %rom home o7ce at &illed price.........................................! 3#,#00K' ;ndin: inentory 8................................................................................ +08;ndin: inentory at &illed priceFFFFFFFFFFFFFF...FF..! 22,+209dd' rei:ht !),300 @ +08FFFFFFFFFFFFFFFFFF...... #10

! 23,400 =r, !3,000 @ +08 * !23,4003+. & Inentory in the p-&lished &alance sheet, at cost

Shipments at costFFFFFFFFFFFFF..........................................! 32,500K' ;ndin: inentory 8....................................................................................+08

;ndin: inentory at &illed priceFFFFFFFFFFFFFFFFFF.!),5009dd' rei:ht !),300 @ +08FFFFFFFFFFFFFFFF.......FF.. #10

! 20,210

3#. cHome O$!e #oo(s )a*ao #ra!h #a+&'o #ra!h

aao BranchF3,000 S>B, costFF.32,500 Unrealized pro"t

5,200 $ash %rei:htF.),300

S


24/30

6erchandise inentory, ecem&er 3) at cost rom o-tsiders see no.2 . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . .

! )1,000

rom home o7ce see no.2 . . . . . . . . . . . . . . . . . . . . . . . .. . . .

45,000

!+3,000

2. !)1,000Branch inentory, )2(3) per &ooks . . . . . . . . . . . . .. . . .

! #2,000

Cess Branch inentory %rom


25/30

. .

6erchandise inentory, Man-ary) . . . . . . . . . . . . . . . .

! +5,520

Cess Be:innin: inentory %rom


26/30

Be:innin: inentory. . . . . . . . . . . . . . . . . . . . . . . . . ! 45,000 Shipments %rom


27/30

$ost o% sales' Inentories, Man-ary ) at cost !0,000 R )208 . . . . .. . . . .

! #5,000

Shipments %rom


28/30

. . . . .?ross pro"t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .

)31,000

;@penses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . .

#2,000

>r-e &ranch netincome . . . . . . . . . . . . . . . . . . . . . . . . . . . .

!++,000

)4. 258Shipments %rom home o7ce &illedprice . . . . . . . . . . . . . . . . . . . . . . . . .

!450,000

iide &y shipments to &ranch cost . . . . . . . . . . . . . . . . . . . . . . . .. . . . .

3+0,000

Billin:percenta:e. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

)258

Cess percenta:e atcost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

)00

ate o% markA-p oncost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

258

)5. !24,000Balance o% allowance %or oeral-ation o% &ranch inentory acco-nt ! 4,100

Cess =eral-ation o% shipments %rom


29/30

Be:innin: inentory %rom


30/30

Cess Shipment to &ranch . . . . . . . . . . . . . . . . . . . . .. . . . .

)2+,000

$ost o% :oods aaila&le %or own sale . . . . . . . . . . . .. . .

435,000

Cess Inentory, ecem&er 3). . . . . . . . . . . . . . . . . .

. . . .

15,500 34,500

?ross pro"t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .

21+,500

;@penses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .

22,200

Net income o% homeo7ce . . . . . . . . . . . . . . . . . . . . . . . . . . .

5#,300

9dd Branch net income see no.) . . . . . . . . . . . . . . . . . . .

,0

$om&ined net income . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .

! +#,20

2). Branch Inentory, )2(3)(20@4' !30,000 @ +08...................................! )1,00022. Branch Inentory, at cost' !25,000 !),000 @ +08.........................! )5,+0023. !30,000

6erchandise inentory, Man-ary ) ! 2+,400Shipments %rom home o7ce DD20,000$ost o% :oods aaila&le %or sale ! 4+,400Cess' $ost o% :oods sold, at B!' Sales ! )5,000 Cess' Sales ret-rns DDD2,000 Net sales ! )3,000 iided &y' S! &ased on cost DDDD)258 DD)0,4006erchandise inentory, endin: at B! ! 3+,000iided &y' Billed price DDDD)208

6erchandise inentory, endin: at costlost d-e to "re ! 30,000

Theor'es

).

>r-e +. alse )). alse )+. >r-e 2).

2.

alse #. alse )2. >r-e )#. >r-e 22. 9

3.

>r-e 1. alse )3. alse )1. >r-e 23. d

4

.

>r-e . >r-e )4. >r-e ). alse 24. d

5.

alse )0. >r-e )5. alse 20. d 25. a

2+. c

solution chapter 13 - advanced accounting ii 2014 by dayag

Documents