50.1K
Verified Solution
Link Copied!
Question 3 (30 marks)
A- The following transactions occurred between the home office and the Mason Branch of Smaldino Company:
- Cash of $1,000 was forwarded by the home office to Mason Branch.
- Merchandise with a home office cost of $60,000 was shipped by the home office to
Mason Branch.
- Equipment was acquired by Mason Branch for $500, to be carried in the home office accounting records.
- Credit sales by Mason Branch amounted to $80,000; the branchs cost of the merchandise sold was $45,000.
- Collections of trade accounts receivable by Mason Branch amounted to $62,000.
- Payments for operating expenses by Mason Branch totaled $20,000.
- Cash of $37,500 was remitted by Mason Branch to the home office.
- Operating expenses incurred by the home office and charged to Mason Branch totaled $3,000.
Required:
Prepare journal entries for these transactions in the accounting records of the Home office and the Mason Branch. (17 marks)
Answer & Explanation
Solved by verified expert
