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-   -   Combines Statement... help me please (https://www.askmehelpdesk.com/showthread.php?t=756075)

  • Jun 29, 2013, 11:05 PM
    bhornkamon
    Combines Statement... help me please
    On December 1 , 2013 Superman corporation opened a branch to sell various types of contemporary jewelry. To assist in the planning of future expansion , Superman Corp. prepares monthly financial statement. The trial balances the home office and its branch of Dec 31,2013 , appear as follow :
    Home Office Branch
    Cash $ 25000 33000
    Accounts receivable 16000 40000
    Inventory 16000 12000
    Branch 84000
    PPE (net) 80000
    Cost of goods sold 34000 24000
    Other expenses 10000 11000
    Accounts payable 35000 15000
    Unrealized Profit in branch inventory 4000
    Home Office 65000
    Common stock 75000
    Retained earnings 50000
    Sales 92000 40000
    Income from branch 9000


    Additional information
    - The home office shipped merchandise on Dec 29,2013 at a billed price of $ 12000 to the branch, but the branch has not received the merchandise.
    - On Dec 30,2013 the branch forwarded $1250 cash to the home office ,but the home office has not received the cash.
    - The branch purchased display cases for $750 cash at year-end. Notification of the branch’s action has been forwarded to the home office but has not yet been received. Accounts for the fixed assets used by the branch are maintained at the home office.
    - All merchandise sold at the branch is received from home office. Billings to the branch are at cost plus 20% of cost to the home office. The $12000 inventory of the branch at Dec 31,2013, does not include the inventory transfer in transit from the home office at the end of December.

    Prepare a working paper for combined financial statement

    This problem is about Perpetual Inventory System. I have no idea to solve this problem.
    Please help me to solve this problems :(

    THANKS SO MUCH
  • Jun 29, 2013, 11:11 PM
    bhornkamon
    Its not clear
    https://mail-attachment.googleuserco...e6ZMM&sadssc=1

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