3. The following information came from the books and records of ABC Corporation and its branch. The balances are as of December 31, 2021, the fourth year of the corporation's existence. (see image below) There are no shipments in transit between the home office and the branch. Both shipment accounts are properly recorded. The closing inventory at billed prices includes merchandise acquired from the home office in the amount of 210,000 and 90,000 acquired from vendors for a total of 300,000. Determine the correct net income of the branch. * Home Office Branch Dr. (Cr.) P (3,200,000) Dr. (Cr.) Sales P 800,000 Shipments to branch Shipments from home office Purchases Expenses Inventory, January 1, 2009 Unrealized profit in branch inventory 1,200,000 500,000 800,000 360,000 (500,000)

College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter11: Work Sheet And Adjusting Entries
Section: Chapter Questions
Problem 4PB: The accounts and their balances in the ledger of Markeys Mountain Shop as of December 31, the end of...
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3. The following information came from the
books and records of ABC Corporation and its
branch. The balances are as of December 31,
2021, the fourth year of the corporation's
existence. (see image below) There are no
shipments in transit between the home office
and the branch. Both shipment accounts are
properly recorded. The closing inventory at
billed prices includes merchandise acquired
from the home office in the amount of
210,000 and 90,000 acquired from vendors
for a total of 300,000. Determine the correct
net income of the branch. *
Home Office
Branch
Dr. (Cr.)
Dr. (Cr.)
P (3,200,000)
Sales
Shipments to branch
Shipments from home office
P 800,000
1,200,000
500,000
800,000
360,000
Purchases
Expenses
Inventory, January 1, 2009
Unrealized profit in branch
(500,000)
inventory
Your answer
Transcribed Image Text:3. The following information came from the books and records of ABC Corporation and its branch. The balances are as of December 31, 2021, the fourth year of the corporation's existence. (see image below) There are no shipments in transit between the home office and the branch. Both shipment accounts are properly recorded. The closing inventory at billed prices includes merchandise acquired from the home office in the amount of 210,000 and 90,000 acquired from vendors for a total of 300,000. Determine the correct net income of the branch. * Home Office Branch Dr. (Cr.) Dr. (Cr.) P (3,200,000) Sales Shipments to branch Shipments from home office P 800,000 1,200,000 500,000 800,000 360,000 Purchases Expenses Inventory, January 1, 2009 Unrealized profit in branch (500,000) inventory Your answer
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