AA1-Chapter (2008 edition) page1 Problem – Triple J Wholesale Company Work Sheet for Combined Financial Statements For the Year Ended December 31, 2008 Debits Cash Accounts Receivable Inventory Plant Assets, net Branch Purchases Shipments from Home Office Expenses Income Tax Trial Balance Home Office Branch 36,000 8,000 35,000 12,000 70,000 15,000 90,000 20,000 290,000 44,000 24,000 45,000 16,000 585,000 120,000 Accounts Payable Accrued Expenses Income Tax Payable Home Office 36,000 14,000 13,500 2,500 Ordinary Share Capital Retained Earnings 50,000 45,000 Adjustments and Eliminations Debit Credit (c ) 5,000 (b) 2,000 (f) 2,500 (a) 4,000 (a) 4,000 (c ) 5,000 (g) 11,000 Income Statement Debit Credit 82,500 74,500 Balance Sheet Debit Credit 49,000 45,000 74,500 94,000 314,000 (e) 3,000 (d) 1,000 (i) 36,400 (h) 48,000 61,000 36,400 Credits Sales 9,000 440,000 585,000 (b) 2,000 (g) 11,000 (f) 95,000 120,000 P55,000 19,500 P74,500 (i) 36,400 (d) 1,000 (e) 3,000 50,000 42,500 2,500 (h) 48,000 112,900 Net income Inventory, beg: Home Office Branch P2,000 + P21,000/120% 49,500 16,500 36,400 Inventory, end: Home Office Branch 112,900 493,900 67,600 561,500 P70,000 12,500 P82,50 487,000 561,500 561,500 262,500 67,600 262,500 AA1-Chapter (2008 edition) page2 Problem – Triple M Company Work Sheet for Combined Financial Statements For the Year Ended December 31, 2008 Debits Cash Trial Balance HO Branch 17,000 200 Inventory Sundry Assets Investment in Branch 23,000 200,000 60,000 Purchases Shipment from Home Office Freight-in from Home Office Sundry Expenses Income Tax 190,000 Credits Sundry Liabilities Income Tax Payable Ordinary Share Capital Retained Earnings Home Office Equity Sales Shipments to Branch Allowance for Markup in BI 11,550 48,450 Adjustments and Eliminations Debit Credit a 1,700 b 1,800 e 1,000 Cost of Goods Sold Debit Credit 33,550 Income Statement Debit Credit 44,770 Combined Balance Sheet Debit Cred8t 20,700 44,770 248,450 a 1,700 g 58,300 190,000 42,000 105,000 5,500 24,300 532,000 195,000 35,000 3,500 c 5,000 d 250 f 110,000 5,750 h 15,460 15,460 66,300 d 250 h 15,460 38,750 15,460 200,000 31,000 200,000 31,000 51,500 155,000 110,000 1,000 532,000 g 58,300 b 1,800 c 5,000 140,000 195,000 295,000 f 110,000 e 1,000 193,510 193,510 229,300 Cost of Goods Sold 229,300 44,770 184,530 229,300 Net income Merchandise inventory, end: Home office Branch [((P15,400 / 110%) + (P15,400 x 5%)] = P14,000 + P770 Total 184,530 266,290 28,710 295,000 P30,000 14,770 P44,770 295,000 295,000 313,920 28,710 313,920 AA1-Chapter (2008 edition) page3 ...AA1 -Chapter (2008 edition) page2 Problem – Triple M Company Work Sheet for Combined Financial Statements... 184,530 266,290 28,710 295,000 P30,000 14,770 P44,770 295,000 295,000 313,920 28,710 313,920 AA1 -Chapter (2008 edition) page3