Question

The following ledger account was in the accounting records of the County Branch of City Company on December 31, 2006 Home Office Debit Date 2006 Jan Balance Mar. 10 Cash remitted to home office Explanation Credit Balance 40,000 cr 30,000 sr 27,350 cr 14,400 41,750 cr 2,60044,350 cr 35,100 cr 7,77042,870 cr 10,000 31 Merchandise returned to home office 2,650 June 6 Merchandise received from home office Oct. 10 Supplies received from home office Dec. 20|Acquisition of fixtures 9,250 31Net income The home office of City Company used the perpetual inventory system and billed the branch for merchandise shipments at 25% above home bffice cost. Instructions: Prepare journal entries to record the above indicated transactions and events in the accounting records of the home office of City Company. Adjusting entries are not required.

Answer 1

Date	Particulars	Dr. (Amount in $)	Cr. (Amount in $)
Mar-10	Cash A/c	10000
	To Country branch		10000
	(Being cash received from Country Branch)
Mar-31	Merchandise A/c	2120
	To Country branch		2120
	(Merchandise supplies returned at cost)
Jun-06	Country branch A/c	11520
	To Merchandise		11520
	(Merchandise supplies by head office at cost)
Oct-10	Country branch A/c	2600
	To Supplies		2600
	(Supplies to Branch)