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Branch Investment and Financial Summary

This document shows the journal entries for the home office and branch of a company. It records various cash transactions like investments in the branch, purchases of equipment, and payment of expenses. The branch earned $600,000 in sales and $235,000 in net income which was transferred to the home office current account. Closing entries were also made to record sales, cost of goods sold, expenses and net income for the period.

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26 views2 pages

Branch Investment and Financial Summary

This document shows the journal entries for the home office and branch of a company. It records various cash transactions like investments in the branch, purchases of equipment, and payment of expenses. The branch earned $600,000 in sales and $235,000 in net income which was transferred to the home office current account. Closing entries were also made to record sales, cost of goods sold, expenses and net income for the period.

Uploaded by

satoukookie
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Home Office Branch

a. Investment in Branch 500,000 Cash 500,000


Cash 500,000 Home Office Current

Investment in Branch 100,000 Purchases 200,000


Accounts Payable 100,000 Accounts Payable
Home Office Current

b. No Entry Equipment - Branch 120,000


Cash

c. Investment in Branch 60,000 Equipment 360,000


Accumulated Depreciation 300,000 Accumulated Depreciation
Equipment 360,000 Home Office Current

d. No Entry Cash 600,000


Sales

e. Branch Current 80,000 Cash 80,000


Cash 80,000 Home Office Current

f. No Entry Expenses 150,000


Cash

g. Branch Current 10,000 Depreciation Expense 10,000


Accumulated Depreciation 10,000 Home Office Current

h. Investment in Branch 25,000 Maintenance Expense 25,000


Maintenance Expense 25,000 Home Office Current

i. Investment in Branch 235,000 Income Summary 235,000


Income Summary 235,000 Home Office Current

Branch Current Home Office Current

CLOSING ENTRIES
Sales 600,000 Sales
Ending Inventory 20,000 Cost of Goods Sold
Purchases 200,000 GROSS PROFIT
Expenses 150,000 Expenses
Maintenance Expense 25,000 NET INCOME
Depreciation Expense 10,000
Income Summary 235,000
500,000

100,000
100,000

120,000

60,000
300,000

600,000

80,000

150,000

10,000

25,000

235,000

600,000

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