question archive On January 01, 2020 Kit Company, Inc
On January 01, 2020 Kit Company, Inc
Subject:AccountingPrice: Bought3
| On January 01, 2020 Kit Company, Inc. establishes a branch in Bauang. During the year, Kit Inc. transfers cash and merchandise to the branch worth P15,000 and P45,000 respectively. Freight was paid by the home office worth P1,500 included in the cost of merchandise. The home office also incurred P5,700 expenses of which 30 percent was allocated to the branch. On December 31, 2020, the branch incurred a loss of P4,000. |
| What is the balance of the branch account as per home office books. Present solution in good accounting form. |
