Heartwell Licayan

Adjusting Entries (1)

Home Office Books Branch Books

a. Investment in Branch 63,750.00 Cash 63,750.00

Cash 63,750.00 Home Office 63,750.00

b. Investment in Branch 75,300.00 Shipment from Home Office 75,300.00

Shipment to Branch 75,300.00 Home Office 75,300.00

c. Accounts Receivable 157,500.00 Accounts Receivable 99,000.00

Sale 157,500.00 Sales 99,000.00

Purchase
d. s 183,750.00 Purchases 33,750.00

Accounts Payable 183,750.00 Accounts Payable 33,750.00

e. Cash 170,400.00 Cash 80,100.00

Accounts Receivable 170,400.00 Accounts Receivable 80,100.00

Home
- Office 80,100.00

- Cash 80,100.00

f. Accounts Payable 186,000.00 Accounts Payable 18,375.00

Cash 186,000.00 Cash 18,375.00

g. Expenses 39,900.00 -

Cash 39,900.00 -
Home
Furniture and Fixtures- Branch 12,000.00 Office 12,000.00

Investment in Branch 12,000.00 Cash 12,000.00

h. Cash -
Investment in Branch -

- Expenses 27,000.00

- Cash 27,000.00

i. Retained Earnings 15,000.00 -

Cash 15,000.00 -

Adjusting Entries (2)

Home Office Books Branch Books

j. Expenses 1,750.00

Accumulated Depreciation 1,750.00

k. Investment in Branch 975.00 Expenses 975.00

Accumulated Depreciation- Branch
F&F 975.00 Home Office 975.00
l. Prepaid Expenses Prepaid Expenses
 375.00 1,125.00

Expenses 375.00 Expenses 1,125.00

m
. Expenses 150.00 Expenses 450.00

Accrued Expenses 150.00 Expenses 450.00

Closing Entries
Home Office Books Branch Books
n
. Sales 157,500.00 Sales 99,000.00

Shipments to Branch 75,300.00 Merchandise Inv. 12/31 35,250.00

Merchandise Inv. 12/31 72,750.00 Income Summary 2,100.00

Merchandise Inc. 1/1 60,180.00 Purchases 33,750.00

Shipment from
Purchases 183,750.00 HO 75,300.00

Expenses 41,445.00 Expenses 27,300.00

Income Summary 20,175.00

o Branch
. Loss 2,100.00
Home
Investment in Branch 2,100.00 Office 2,100.00
p
. Income Summary 2,100.00 Income Summary 2,100.00

Branch Loss 2,100.00

q
. Income Summary 18,075.00

Retained Earnings 18,075.00