The following is the income statement of a branch for the six-month period ending June...
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Accounting
The following is the income statement of a branch for the six-month period ending June 30, 2020:
| Sales | P620,000 | ||
| Cost of sales: |
515,000 | ||
| Shipments from H.O. | P550,000 | ||
| Purchases | 50,000 | ||
| Total | 600,000 | ||
| Ending inventory from H.O | 75,000 |
85,000 | |
| Ending inventory from outsider | 10,000 | ||
| Gross profit | 105,000 | ||
| Expenses | 85,000 | ||
| Net income | P20,000 | ||
The home office ships merchandise to and bills, the Branch office at 125% of cost. The rent of the branch office for six months, at a monthly rate of P1,000 was paid by the home office.
1. How much is the Home office net income from its branch office for the six months ending June 30, 2020?
2. Inventory of the Branch office at cost as of June 30, 2020 is?
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