Jinx Corporation has two branches, Kennen and Samira, to which merchandise billed at 20% above...
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Accounting
Jinx Corporation has two branches, Kennen and Samira, to which merchandise billed at 20% above cost. Unadjusted trial balances of the three entities at December 31, 2022 are summarized as follows: Jinx Kennen Samira Cash 33000 22000 13000 Inventory 80000 18000 24000 Other current assets 50000 25000 23000 Investment in A 45000 Investment in B 42000 Shipments from H/O 60000 36000 Purchases 160000 Expenses 90000 25000 20000 Current Liabilities 40000 15000 11000 Capital Stock 100000 Retained Earnings 50000 Allowance - Branch A 13000 Allowance - Branch B 12000 Sales 195000 90000 75000 Shipments - A 50000 Shipments - B 40000 In addition to the trial balance, the following information on December 31, 2022 are available: A. Merchandise costing P10,000 was in transit from the home office to Samira at December 31, 2022. B. Physical inventories at December 31, 2022 were as follows: . Home office P70,000 b. Branch A P21,000 c. Branch B 15,000 1. Prepare working papers to combine home office and branch accounts for the year ended December 31, 2022. 2. Prepare reconciliation of the Investment and Home Office Accounts after all adjusting and closing entries have been made
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