Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. (6-10) use the following...

(6-10) Use the following...

50.1K

Verified Solution

Question

Accounting

image

image

(6-10) Use the following data to answer questions (6 through 10). The home office of Lulu Supermarket sent goods that cost $20,000 to Ajman branch at a 25% mark-up. The branch sold all the goods for $32,000 and sent cash of $22,000 at the end of the period to the home office. The home office charged the branch with $5,000 of its salaries expense. (6) The investment in the branch account is debited by: a) $8,000 b) $25,000 c) $30,000 d) None of the above (7) The home office account is credited by: a) $20,000 b) $30,000 c) $17,000 d) None of the above. (8) The net income reported by the branch is: a) $12,000 b) $7,000 c) $10,000 d) None of the above. (9) The salaries expense transaction in the home office is recorded as: a) debit home office and credit cash of $5,000. b) debit salaries expense and credit cash $5,000. c) debit investment in branch and credit salaries expense $5,000. d) No transaction (10) The reciprocal account balance shows the following balances: a) debit investment in branch and credit home office of $20,000. b) debit home office and credit investment in branch $25,000 c) debit investment in the branch of $35,000 and home office of $20,000 d) None of the above

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!
Become a Member

Other questions asked by students

Basic Math
1.2K views

Find an equation for the tangent plane of the surface xy^2 + yz^2 − 2xz =...

Chemistry
1.2K views

Phenolphhalein indicator is used in this experiment because it changes color in the pH range of...

Physics
1.2K views

a) Explain that in a one-dimensional system, although a system with an even number of electrons...

Basic Math
1.2K views

If the current position of the object at time t is s (t), then the...

Calculus
1.2K views

A street light is at the top of a 16 ft tall pole. A woman...

Accounting
1.2K views

PLZ HELP Inventary records for Capetown, Incorporated revealed the following: Capetown...

Accounting
1.2K views

Thanks to Finish the last image CVP income statement. Below you will see yellow...

Accounting
1.2K views

When using PPS sampling, do auditors select sample items based on individual dollars, audit individual...

Accounting
1.2K views

The contra-account, Fair Value Adjustment, is a(n)a.offset account.b.adjustment account.c.valuation account.d.opposite account.

Accounting
1.2K views

8. A junior executive is fed up with the operating policies of his boss. Before...

Accounting
1.2K views

2:28 Sport Box sells a wide variety of sporting equipment. The following is information on...

Accounting
1.2K views

1) "A" purchases a life insurance policy naming his children as beneficiaries. Assume "A" dies....