Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. question 3 (30 marks) a- the following transaction

Question 3 (30 marks) A- The following transactions occurred between the home office and the...

50.1K

Verified Solution

Question

Accounting

Question 3 (30 marks)

A- The following transactions occurred between the home office and the Mason Branch of Smaldino Company:

  1. Cash of $1,000 was forwarded by the home office to Mason Branch.
  2. Merchandise with a home office cost of $60,000 was shipped by the home office to

Mason Branch.

  1. Equipment was acquired by Mason Branch for $500, to be carried in the home office accounting records.
  2. Credit sales by Mason Branch amounted to $80,000; the branchs cost of the merchandise sold was $45,000.
  3. Collections of trade accounts receivable by Mason Branch amounted to $62,000.
  4. Payments for operating expenses by Mason Branch totaled $20,000.
  5. Cash of $37,500 was remitted by Mason Branch to the home office.
  6. Operating expenses incurred by the home office and charged to Mason Branch totaled $3,000.

Required:

Prepare journal entries for these transactions in the accounting records of the Home office and the Mason Branch. (17 marks)

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