The following is the income statement of a branch for the six-month period ending June...
60.1K
Verified Solution
Link Copied!
Question
Accounting
The following is the income statement of a branch for the six-month period ending June 30, 2020:
Sales
P620,000
Cost of sales:
515,000
Shipments from H.O.
P550,000
Purchases
50,000
Total
600,000
Ending inventory from H.O
75,000
85,000
Ending inventory from outsider
10,000
Gross profit
105,000
Expenses
85,000
Net income
P20,000
The home office ships merchandise to and bills, the Branch office at 125% of cost. The rent of the branch office for six months, at a monthly rate of P1,000 was paid by the home office.
1. How much is the Home office net income from its branch office for the six months ending June 30, 2020?
2. Inventory of the Branch office at cost as of June 30, 2020 is?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
