a. The home office inadvertently faxed a note to the branch informing the branch of a collection of one of the home office's customers amounting to P23,000. This amount was ignored by the branch's accountant. b. The branch returned merchandise to the home office worth P 256,000. This was not the item ordered by the branch. The accountant of the home office was not able to update the records pertaining to this transaction. c. Merchandise worth P66.340 is still in transit to the branch. d. The branch accountant recorded a merchandise worth P245,000 as P254,000. e. The home office collected an account receivable of the branch amounting to P35,670. The home office accountant repeatedly sent a note to the branch regarding this collection. The branch, in error, recorded the amount twice in its books. f. The branch accountant became aware of the transposition error he committed when he recorded the receipt of the merchandise and made the correcting entry accordingly. g. The branch's net income was not recorded by the home office. The branch reported a net income of P366,920. Compute for the unadjusted balance of the Home Office Current account.

a. The home office inadvertently faxed a note to the branch informing the branch of a collection of one of the home office's customers amounting to P23,000. This amount was ignored by the branch's accountant. b. The branch returned merchandise to the home office worth P 256,000. This was not the item ordered by the branch. The accountant of the home office was not able to update the records pertaining to this transaction. c. Merchandise worth P66.340 is still in transit to the branch. d. The branch accountant recorded a merchandise worth P245,000 as P254,000. e. The home office collected an account receivable of the branch amounting to P35,670. The home office accountant repeatedly sent a note to the branch regarding this collection. The branch, in error, recorded the amount twice in its books. f. The branch accountant became aware of the transposition error he committed when he recorded the receipt of the merchandise and made the correcting entry accordingly. g. The branch's net income was not recorded by the home office. The branch reported a net income of P366,920. Compute for the unadjusted balance of the Home Office Current account.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

a. The home office has billed the branch the amount of P37,500 for the merchandise, which was in transit on December 31. b. A home office accounts receivable for P10,500 was collected by the branch. Said collection was not reported to the home office by the branch. c. Supplies of P4,500 was returned by the branch to the home office but the home office has not yet reflected in its records the receipt of the supplies. d. The branch made profit of P10,100o for the month of December but the home office erroneously recorded it as P11,180. e. The branch has not received the cash in the amount of P25,000 sent by home office on December 31. This was charged to General Expense account.
48. A sales invoice for P 5,200 was computed correctly but, by mistake, was entered as P 2,500 to the sales journal and to the accounts receivable master file. The customer remitted only P 2,500, the amount on his monthly statement. Select the control that should have prevented the misstatement. Group of answer choices Unauthorized remittance deductions made by customers or other matters in dispute are investigated promptly by a person independent of the accounts receivable function. Sales invoice serial numbers, prices, discounts, extensions, and footings are independently checked. The customers’ monthly statements are verified and mailed by a responsible person other than the bookkeeper who prepared them. Prelistings and predetermined totals are used to control postings.
The following misstatements are included in theaccounting records of the Joyce Manufacturing Company:1. A sales invoice was miscalculated by $1,000 as a result of a key-entry mistake.2. Cash paid on accounts receivable that had been prelisted by a secretary was stolenby the bookkeeper who records cash receipts and accounts receivable. He failed torecord the transactions.3. A material sale was recorded on the last day of the year even though the goods werenot shipped until 3 days later.4. Merchandise was shipped to a customer, but no bill of lading was prepared. Becausebillings are prepared from bills of lading, the customer was not billed.5. The controller approved a payment to a consulting firm owned by his sister. Theconsulting firm did not actually perform any services for the company.6. The shipping clerk included several additional valuable items to a shipment that werenot included in the customer’s order and were not invoiced to the customer. Theshipping clerk has an arrangement…
The following misstatements are included in the accounting records of the Dillon Manufacturing Company: Cash paid on accounts receivable was stolen by the mail clerk when the mail was opened. A sales invoice was miscalculated by $1,000 as a result of a key-entry mistake. Cash paid on accounts receivable that had been prelisted by a secretary was stolen by the bookkeeper, who records cash receipts and accounts receivable. He failed to record the transactions. A material sale was recorded on the last day of the year even though the goods were not shipped until three days later. Merchandise was shipped to a customer, but no bill of lading was prepared. Because billings are prepared from bills of lading, the customer was not billed. The controller approved a payment to a consulting firm owned by his sister. The consulting firm did not actually perform any services for the company. The shipping clerk included several additional valuable items in a shipment that were not…
2. Your examination of the accounts revealed the following information:1. On December 28, the branch remitted P12,500 in cash to the home office that was not received until January 4.2. Merchandise that was billed to the branch at P7,500 was in transit at December 31.3. The branch failed to take up a P1,200 credit memo from the home office representing the cash collections.4. The branch returned damaged merchandise worth P3,000 but the home office recorded it as P13,0005. The unadjusted balances in the home office and branch books are P23,140 and P14,340, respectively.What is the adjusted balance of Investments in Branch and Home Office accounts on December 31, 2020? *
A customer of Mutare paid for merchandise originally purchased on account with a check thathas been erroneously entered into Mutare’s cash account for $570 (it actually has been issuedand paid for $750).Required:Record the appropriate journal entry to correct the error.
Which of these arrangements of duties could most likely lead to an embezzlement or theft?a. The inventory warehouse manager has responsibility for making the physical inventory observation and reconciling discrepancies to the perpetual inventory records.b. The cashier prepared the bank deposit, endorsed the checks with a company stamp, and delivered the cash and checks to the bank for deposit (no other bookkeeping duties).c. The accounts receivable clerk received a list of payments received by the cashier so he could make entries in the customers’ accounts receivable subsidiary accounts.d. The financial vice president received checks made out to suppliers and the supporting invoices, signed the checks, and mailed the checks.
Which of the following errors would not affect net income?A. Post-dated checks are classified as cash upon receipt from customersB. Purchases on account are unrecorded because the goods are still in transit : butthe goods were included in inventoryC. Depreciation expense was recorded twice for the same yearD. The client charged an ordinary repair as part of equipment cost.
Pharoah Ltd. designated Alexa Kidd as petty cash custodian and established a petty cash fund of $410. The fund was reimbursed when the cash in the fund was at $65. Petty cash receipts show that funds were disbursed for $160 of supplies and $183 of freight charges on inventory purchases. Prepare the entries needed to record the following independent transactions. (a) Assume that Pharoah decides to increase the size of the petty cash fund to $610 immediately after the reimbursement. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit
Your examination of the accounts revealed the following information: 1. On December 28, the branch remitted P12,500 in cash to the home office that was not received until January 4. 2. Merchandise that was billed to the branch at P7,500 was in transit at December 31. 3. The branch failed to take up a P1,200 credit memo from the home office representing the cash collections. 4. The branch returned damaged merchandise worth P3,000 but the home office recorded it as P13,000 5. The unadjusted balances in the home office and branch books are P23,140 and P14,340, respectively. What is the adjusted balance of Investments in Branch and Home Office accounts on December 31, 2020?
Your examination of the accounts revealed the following information:1. On December 28, the branch remitted P12,500 in cash to the home office that was not received until January 4.2. Merchandise that was billed to the branch at P7,500 was in transit at December 31.3. The branch failed to take up a P1,200 credit memo from the home office representing the cash collections.4. The branch returned damaged merchandise worth P3,000 but the home office recorded it as P13,0005. The unadjusted balances in the home office and branch books are P23,140 and P14,340, respectively. What is the adjusted balance of Investments in Branch and Home Office accounts on December 31, 2020?
Ibra LLC sold OMR 2000 goods to one of their reputed customer Mr Syed and collected the cheque immediately. The company sent the cheque to the bank for deposit, but the bank returned the cheque because of non-sufficient funds in Mr Syed’s account. How will you adjust the above reconciliation item in bank reconciliation statement? a. Deduct OMR 2000 from company’s cash book balance b. Add OMR 2000 to Company’s cash book balance c. Deduct OMR 2000 from bank reconciliation statement balance d. Add OMR 2000 to the bank statement balance Clear my choice