The main plant transfers merchandise to the branch at 120% of cost, and this merchandise is inventoried by the branch at billed prices. The branch receives most of its inventory from the main plant, but it also purchases some items from local suppliers.
Medina Corporation has operations in two locations- a main plant and a branch plant. Required: Prepare journal entries to reflect the transactions and events in the accounts of the branch and home office. Closed the balance of the revenue and expense summary account. Branch beginning and ending inventories were $1900 and $2000 respectively. Closed the nominal accounts to the revenue and expense summary account. Received notice that the home office had collected $1000 from a branch customer (assume that it was a customer included in item 3). Collected a note for the home office in the amount of $3000 plus $150 interest. Received a debit memo from the home office for the following expenses allocated by the home office to the branch: depreciation expense $500 other operating expense $200. Paid $2000 for advertising, 50% of which is a home office expense. Returned 20% of the merchandise received in item 1 to the home office. Sold merchandise to customers on account in the amount of $20000. Purchased merchandise from Alta Wholesalers, $4000. Received shipments from the home office, billed at $10.000 home office cost. Transactions and events affecting the Fort Worth branch during 20X9 are summarized as follows: 1. Arnimal Corporation is located in Dallas, Texas, and its branch is located in Forth Worth, Texas. AKUNTANSI KEUANGAN LANJUTAN II ACCOUNTING FOR BRANCH OPERATIONS SOAL A.
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