Question

Please Solve This Question (Advanced Accounting)

combined Question five: The unadjusted trial balances of Areen Co. and its branch at 31/12/2019: accounts JERICO BRANCH Elimination sales -390000 -220000 inventories 1/1 120000 84,000 purchases 180000 shipment to shipments from 150000 inventories 31/12 -90000 -36000 operating expenses 230000 30000 gain or losses TOTAL beginning retained earning -290000 net income dividend 20000 ending retained statement of financial position cash 104000 148000 inventories 31/12/2019 90000 36000 investment in branch allowance for valuation of inventories -39000 other assets 305000 current liabilities -45000 -12000 ordinary shares -250000 home office -180000 retained earning total Required: 1- Fined the missing amount if the company shipment the goods at 20% above cost to branch. 2. Complete the working paper for combined financial statements.

Answer 1

Accounts Sales Inventories 1/1 Purchases Shipment to Shipment from Inventories 31/12 Operating Expense Gain or loss Beginning retained earning Net income Dividend Ending retained earning Statement of financial position Cash Inventories 31/12 Investment in branch Allowance for valuation of inventories Other asset Current liabilities Ordinary shares Home office Retained earning Jerico Branch Elimination Combined $ (390,000) $ (220,000) $(610,000) $ 120,000 $ 84,000 $ 204,000 $ 180,000 $ 180,000 $ (125,000) $(125,000) $ 150,000 $ 150,000 (90,000) $ (36,000) $ 6,000.0 $(120,000) $ 230,000 $ 30,000 $ 260,000 (75,000) $ 8,000 $ (61,000) $ (290,000) $(290,000) $ (75,000) $ 8,000 $ (61,000) $ 20,000 $ $ 20,000 $ (345,000) $ 8,000 $(331,000) $ $ $ $ 104,000 $ 90,000 $ 180,000 148,000 $ 252,000 36,000 $ 6,000.0) $ 120,000 -180000 $ (12,000) (39,000) $ 305,000 (45,000) $ $ (250,000) $ $ (345,000) $ $ (39,000) $ 305,000 $ (57,000) $(250,000) 180000 $ - $(331,000) (180,000) 8,000