2601-421

Advanced Accounting 1
· unitie for rouvieron
↳ mate
↳
merg er & aquisition Senior

2/2566

1
 Section 1: ผศ.ดร.พงศ์พรต ฉัตราภรณ์
• January & February
• 217/2
• TU & TH 13-16
• Or by appointment
• Tel: 02 218-5806
• [email protected]
• Mobile: 089 693-8952

2
 -Headquarters

Home
-
Head /
& D
Office and Branch Accounting · 28 .
↑

did missio
88 of 209
↳ aws ban giv en same in
Interoffice Accounts: Burste !
.
. .

suriosity od
only

-iro
n
wo doing
Ex . Ho
. as iwan/an Lubeisu
.

; needannten e norward HO
.
innoinona rate's ReorttassHo
.

cuz 9
.

for all dienda in issues How an

- : delidd .

/investment in branch
1. Branch
balance most
account
dent .
– Asset,
↳ Dr.
↳ awe news insensu wasset/an
mosibeig
.

but or

128 50.
20668 ) . M %
-
Home office account – Liability/Equity, Cr. ↳ drienn whe wo. EHO NOW.
,

↑ aga . Ea .
in sirwanson ↳
only
wonder 84
reg

2. Shipment to branch account – Contra account Po

belie e een
(deduct purchases), Cr.
↳ HO & .

from

- ?
soon
Zer
.
voinnirorahe
WomscgWe
CONTRA
o

Shipment from home office account – Similar

:

↳ alu u
S

to
O purchases (from HO only), Dr.
d un 6 JUNONWO ,

3
 Home Office Branch
⑳ $1,000 forwarded
1. Cash w
to
-- branch.

Dr. -
Branch 1,000
VDr. Cash 1,000
Cr. Cash 1,000 Cr. -
Home office 1,000
maybe abo bene win didne (for dation

↑
>
- wmtos
or

O to branch. jassume periodic

2. Merchandise $60,000 cost shipped
-

O
Dr. Branch 60,000 Dr. Shipment note o
-

↓
°

from HO 60,000
Cr. Shipment
-
to branch 60,000 ↳
Cr. Home office60,000
↳ iftee perpetual
CONTRA

Cr
.
Inventory Dr .
K
- - - -

4
 Home Office Branch
3. Equipment $500 bought by branch, recorded by HO.

Dr. Equipment 500 Dr. Home office 500

Cr. Branch 500 Cr. Cash 500

5
 if uanto
nome
↳ Dririba /HW1 2 8811 3
I
- .

Dr Branch
-
3.1 At the end of year Dr
Van
↑

-
BriAcedepressories
.
.

Cr OUR
. triezo
Cr HO
.

Othis
Annual depreciation
nu
Dr. Depreciation
- expense
Cr. Accumulated depreciation -

n50 20158t cuz

.
zeni

Home office: Branch: ↓

rig 200 .

Dr. Branch XX Dr. DE pre XX

Greg rig
Cr. ADepre
CC
XX Cr. HO XX
↳ since Dr .
equipmentby

6
 CASE B
Equipment bought by branch, is recorded by the branch.

Dr. Equipment XX
No entry
Cr. Cash XX

Dr. DE XX
No entry
Cr. AD XX

7
 CASE C
Equipment bought by HO, is recorded by the HO.

Dr. Equipment XX
No entry
Cr. Cash XX

Dr. Branch XX Dr. DE XX

Cr. AD XX Cr. HO XX

8
 CASE D
Equipment bought by HO, is recorded by the branch.

Dr. Branch XX Dr. Equipment XX

Cr. Cash XX Cr. HO XX

Dr. DE XX
No entry
Cr. AD XX

9
 Home Office Branch
4. Credit sales by branch $80,000.

- Dr. A/R 80,000

Cr. Sales 80,000

5. Collection of receivables for $62,000.

- Dr. Cash 62,000

Cr. A/R 62,000

10
 Home Office Branch
6. Payment for expenses $20,000.

- Dr. Expenses 20,000

Cr. Cash 20,000

7. Cash $37,500 remitted to HO.

Dr. Cash 37,500 Dr. Home office 37,500

Cr. Branch 37,500 Cr. Cash 37,500

11
 Example I
Home office collection of branch A/R
Home office:
Dr. Cash XX
Cr. Branch XX

Branch:
Dr. Home office XX
Cr. Accounts receivable XX

12
 Example II
Branch collection of HO A/R
Home office:
Dr. Branch XX
Cr. Accounts receivable XX

Branch:
Dr. Cash XX
Cr. Home office XX

13
 Home Office Branch
8. Expense
- $3,000 transferred
C to branch. ;Hodenso
- -
.
Aware

-400 branch
.

Dr. Branch 3,000 Dr. Expenses 3,000

Cr. Cash
↳ Hoerbi
- 3,000
je
Cr. Home office 3,000

if suberrone ensure unteer

9. Ending inventory

45,000 20,000

su na
borrowtRanso . 14
 Home office Branch
Dr. Cr. Dr. Cr.
Cash 25,000 5,000
A/R 39,000 18,000
Inventory, Jan 1 80,000 -
Branch 26,000
Equipment 150,000
Accumulated depreciation 10,000
A/P 20,000
Home office 26,000
Common stock 150,000
R/E, Jan 1 70,000
Dividends paid 40,000
Sales 400,000 80,000
Purchases 260,000
Shipment to branch 60,000
Shipment from HO 60,000
Expenses 90,000 23,000
710,000 710,000 106,000 106,000
Inventory, Dec 31 45,000 20,000 15
Branch Income Statement
Sales 80
COGS:
SFHO 60
- E.I. 20 40
Gross profit 40
- Exp 23
Net profit 17

16
 HO Income Statement
Sales 400
COGS:
B.I. 80
Purchases 260
- STB 60 200
COGAFS 280
- E.I. 45 235
Gross profit 165
- Exp 90
HO net profit 75
+ Branch net profit 17
Net profit 92

17
18
 Home Office Branch
Closing entries

Dr. Sales 400 Dr. Sales 80

E.I. 45 E.I. 20
STB 60
Cr. Purchases 260 Cr. Purchases -
B.I. 80 SFHO 60
Exp 90 B.I. -
Income sum. 75 Exp 23
Income sum. 17

19
 Home Office Branch
Closing entries

Dr. Branch 17 Dr. I/S 17

Cr. Branch I/S 17 Cr. HO 17

Dr. Branch I/S 17

Cr. I/S 17

Dr. I/S 92
Cr. R/E 92

20
 Home Office and Branch
Working Paper for Combined Financial Statements
For the Year, Ended December 31, 20X1
HO Branch Elimination Combined
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.

Income statement
Sales
Beginning inventory
Purchases
Shipment to branch
Shipment from HO
Ending inventory
Expenses
Net income

R/E Statement
R/E, Jan 1
Net income
Dividends declared
R/E, Dec 31
21
Statement of Fin. Position

Cash

A/R

Inventory, Dec 31

Branch

Equipment

Accumulated depreciation

A/P

Home office

Common stock

R/E, Dec 31

22
 HO Branch Elimination Combined
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Income statement
Sales 400,000 80,000
Beginning inventory 80,000
Purchases 260,000
Shipment to branch 60,000
Shipment from HO 60,000
Ending inventory 45,000 20,000
Expenses 90,000 23,000
Net income 75,000 17,000
505,000 505,000 100,000 100,000
R/E Statement
R/E, Jan 1 70,000
Net income 75,000 17,000
Dividends declared 40,000
R/E, Dec 31

Statement of Fin. Position

Cash 25,000 5,000
A/R 39,000 18,000
Inventory, Dec 31 45,000 20,000
Branch 26,000
Equipment 150,000
Accumulated depreciation 10,000
A/P 20,000
Home office 26,000
Common stock 150,000
R/E, Dec 31
325,000 325,000 43,000 43,000
23
 HO Branch -
Elimination -
Combined
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Income statement
Sales 400,000 80,000 480,000
Beginning inventory 80,000 80,000
Purchases 260,000 260,000
ninwo .o .woor
P
[
Shipment from HO S
Shipment to branch

Ending inventory Cr
60,000

45,000
60,000
20,000
2) 60,000 ↳
2) 60,000 & -----
Easte estate
Lainorate oreg-----
65,000

I
.

Expenses 90,000 23,000 113,000

Net income 75,000 17,000 92,000
505,000 505,000 100,000 100,000 545,000 545,000
R/E Statement
R/E, Jan 1 70,000 70,000
Net income 75,000 17,000 92,000
Dividends declared 40,000
Dr .
40,000
R/E, Dec 31 - -
- +o +92-40 &
122,000

I
162,000 162,000
Statement of Fin. Position
Cash 25,000 5,000 30,000
A/R 39,000 18,000 57,000
Inventory, Dec 31 Dr . 45,000 20,000 65,000
cb
Branch 26,000 1) 26,000 -----
Equipment

Imawo
150,000 150,000
Accumulated depreciation
A/P
10,000
20,000
.o .
voor
P 10,000
20,000
[
Home officeS 26,000 1) 26,000 -----
Common stock 150,000 150,000
O
R/E, Dec 31 - -

-122,000
325,000 325,000 43,000 43,000 302,000 302,000

use these numbers bu anselawo o

-
↑ # 24
 K

Shipment to Branch
contra 88.0 vos Ho
a y
&
trasfer price
1. Cost doweinmne ser but Holsihanide
recall 50 . UC is Market price

worezig
2. Cost plus mark-up geomion, but and dent moder

3. Market price

25
 Cost Plus Mark-Up
Shipment at mark-up expressed as a percentage
on cost, for example, 25% above HO cost.
Cost = 100 Mark-up = 100x25% = 25
Branch merchandise cost = 100+25 = 125
Mark-up: 25% of cost
= ???% on billed price

26
 Cost Plus Mark-Up
Cost Mark-up Billed price

100

27
 Cost Plus Mark-Up
Cost Mark-up Billed price

100 100x25%= 25 100+25= 125

% on billed price = 25 / 125

= 20% 

28
 Ex Cone said 25% BP >
-
.
C Mu BP

Home Office Branch

75
25 100
+ =

3
bers o

2. Merchandise $60,000 cost shipped to B at 150% on cost.

Dr. Branch 90,000 Dr. Shipment 60k + 30K

from HO 90,000
Cr. Shipment
to branch 60,000 Cr. Home office 90,000
& cost
naja

mig
Cr. Unrealizednibeneina
profit on
Or B
cuzehave on . Error

D
under assi
Unearned Rev

(L)
- 30,000
inventory &
doneneha when aiu verben Dis
benbesene ne best u ,

29
 Home Office Branch
if perpetual
2. Merchandise $60,000 cost shipped to B at 150% on cost.

Dr.
Dr Branch
.
90 ,000
,
Inventory 90 000
,

Dr.CrBranch
Inventory0090,000
.
000
,
Dr. Shipment
Cr Ho
.
90 , 000

Cr .
Unrealized 30 000
from HO 90,000
,

Cr. Shipment
profit on
Branch
inventory 60,000
to branch Cr. Home office 90,000

Cr. Unrealized
profit on B
inventory 30,000

29
 Home office Branch
Dr. Cr. Dr. Cr.
Cash 25,000 5,000
A/R 39,000 18,000
Inventory,*
Jan 1 periodic 80,000 - resig
Branch 56,000 M

-
Equipment 150,000
Accumulated depreciation 10,000
mining
-
Unrealized profit cr
.
C
30,000

I
A/P 20,000
Home office 56,000
Common stock 150,000
R/E, ⑳
Jan 1 70,000
Dividends paid 40,000
Sales 400,000 80,000
-
Purchases 260,000
Shipment to branch 60,000 p amoduz
·
rain
-
Shipment from HO 90,000
Expenses 90,000 23,000
740,000 740,000 136,000 136,000
Inventory, Dec 31 45,000 30,000 30
 Branch Cost of Goods Sold
Cost Plus Mark-up Cost
BI - BI -
+P - +P -
+ SFHO 90,000 + SFHO 60000
CGAFS 90,000 CGAFS 60,000
- EI 30,000 - EI 20,000
COGS 60,000 COGS 40,000

31
 Branch net profit
Sales 80,000
COGS 60,000
Gross profit 20,000
Expenses 23,000
Net loss 3,000

32
 Home office net profit
Sales 400,000
COGS 80+(260-60)-45 235,000
Gross profit 165,000
Expenses 90,000
Net profit 75,000

Branch net loss = (3,000)

Adjustment 20,000 17,000
Net profit 92,000

33
 Adjustment = 20,000 ???
Branch COGS = 60,000 SFHO = 90,000
Unrealized profit = 30,000
dag
divigigba °
nurse
Unearned Rev e

60,000 O
x 30,000 =
20 000
,
-

DM
f
90,000

34
 Adjustment = 20,000 ???
Branch COGS = 60,000 SFHO = 90,000
Unrealized profit = 30,000

= 60,000 x 50
150

or = Branch COGS (received from HO)

x Markup on billed price

35
 Home Office Branch
Closing entries

Dr. Sales 400 Dr. Sales 80

E.I. 45 E.I. 30
STB 60 I/S 3
Cr. Purchases 260 Cr. Purchases -
B.I. 80 SFHO 90
Exp 90 B.I. -
Income sum. 75 Exp 23

36
 Home Office Branch
Closing entries

Dr. B. I/S 3 Dr. HO 3

Cr. Branch 3 Cr. I/S 3

Dr. Unrealized P 20
Cr. B. I/S 20

Dr. B.I/S 17
Cr. I/S 17
Dr. I/S 92
Cr. R/E 92
37
 Unrealized Profit on Branch Inventory

Branch I/S 20,000 Balance, 1/1 -

Balance, 31/12 10,000 Shipment to B 30,000

30,000 30,000

38
 HO Branch Elimination Combined
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Income statement
Sales 400,000 80,000
Beginning inventory 80,000
Purchases 260,000
Shipment to branch 60,000
Shipment from HO 90,000
Ending inventory 45,000 30,000
Expenses 90,000 23,000
Net income 75,000 3,000
505,000 505,000 113,000 113,000
R/E Statement
R/E, Jan 1 70,000
Net income 75,000 3,000
Dividends declared 40,000
R/E, Dec 31

Statement of Fin. Position

Cash 25,000 5,000
A/R 39,000 18,000
Inventory, Dec 31 45,000 30,000
Branch 56,000
Equipment 150,000
Accumulated depreciation 10,000
Unrealized profit 30,000
A/P 20,000
Home office 56,000
Common stock 150,000
R/E, Dec 31
355,000 355,000 56,000 56,000 39
 HO Branch Elimination Combined
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Income statement
Sales 400,000 80,000 480,000
Beginning inventory 80,000 80,000
Purchases 260,000 260,000
Shipment to branch 60,000 2) 60 -
Shipment from HO 90,000 2) 90 -
Ending inventory 45,000 30,000 3) 10,000 65,000
Expenses 90,000 23,000 113,000
Net income 75,000 3,000 4) 20,000 92,000
505,000 505,000 113,000 113,000 545,000 545,000
R/E Statement
R/E, Jan 1 70,000 70,000
Net income 75,000 3,000 4) 20,000 92,000
Dividends declared 40,000 40,000
R/E, Dec 31 122,000
162,000 162,000
Statement of Fin. Position
Cash 25,000 5,000 30,000
A/R 39,000 18,000 57,000
Inventory, Dec 31 45,000 30,000 3) 10,000 65,000
Branch 56,000 1) 56 -
Equipment 150,000 150,000
Accumulated depreciation 10,000 10,000
Unrealized profit 30,000 2) 30 -
A/P 20,000 20,000
Home office 56,000 1) 56 -
Common stock 150,000 150,000
R/E, Dec 31 122,000
355,000 355,000 56,000 56,000 302,000 40
302,000
 Unequal Balance between
Home office and Branch Account

1. รายการระหว่างทาง
2. อีกฝ่ ายหนึ่ งไม่ได้บนั ทึกบัญชี
3. บันทึกผิดบัญชี
4. บันทึกผิดจํานวนเงิน

41
 HO Branch Elimination Combined
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Income statement
Sales 15,000 7,000
Beginning inventory 1,600 1,500
Purchases 12,000 1,200
Shipment to branch 5,000
Shipment from HO 4,950
Ending inventory 1,300 540
Expenses 2,700 1,400
Net income 5,000 1,510
21,300 21,300 9,050 9,050
R/E Statement
R/E, Jan 1 3,400
Net income 5,000 1,510
Dividends declared
R/E, Dec 31

Statement of Fin. Position

Cash 10,700 4,200
Inventory, Dec 31 1,300 540
Branch 7,000

Unrealized profit 600

Home office 6,250

Common stock 10,000
R/E, Dec 31
19,000 19,000 6,250 6,250 42
-
Additional Information:
• $1,100 of branch BI received from HO.
• Shipment policy: 110% G
-
on cost. -

• Shipment in-transit = $500 (cost).

↑
MW =

So BP
10 %

=
550

Lon
W
• Branch pays $200 expense of HO, not record
- -

yet.
• EI:
– HO = $1,300
– Branch = $540 ($440 from HO).
↳a40Boros acost

O 43
 Home Office Branch
Branch pay $200 expense of HO, not record yet.

Dr. Expenses 200

Cr. Branch 200

Shipment in-transit = $500 (cost).

Dr. SFHO 550

Cr. HO 550

44
 Home Office and Branch
Reconciliation of Home Office and Branch Account
December 31, 20X1

Branch A/C HO A/C

Book balance 7,000 Dr. 6,250 Cr.
Adjustments:

Expenses 200 Cr.

Shipment in-transit 550 Cr.

Correct balance 6,800 Dr. 6,800 Cr.

45
Unrealized Profit on Branch Inventory
so Beg
- balance 100
②
↳ BI die HO 1
,
700669 %
~erMU 100

Shipment to B 500
↳ shipment to B 5 000 e
, working paper
So
MU =
500 Do 600
wermas

46
 HO Branch Elimination Combined
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Income statement
Sales 15,000 7,000
Beginning inventory 1,600 1,500
Purchases 12,000 1,200
Shipment to branch 5,000
Shipment from HO 4,950
Ending inventory 1,300 540
Expenses 2,700 1,400
Net income 5,000 1,510
21,300 21,300 9,050 9,050
R/E Statement
R/E, Jan 1 3,400
Net income 5,000 1,510
Dividends declared
R/E, Dec 31

Statement of Fin. Position

Cash 10,700 4,200
Inventory, Dec 31 1,300 540
Branch 7,000

Unrealized profit 600

Home office 6,250

Common stock 10,000
R/E, Dec 31
19,000 19,000 6,250 6,250 47
 HO Branch Elimination Combined
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Income statement
Sales 15,000 7,000 22,000
Beginning inventory 1,600 1,500 6) 100 3,000
Purchases 12,000 1,200 13,200
Shipment to branch 5,000 5) 5,000 -
Shipment from HO 4,950 1) 550 5) 5,500 -
Ending inventory 1,300 540 7) 90 2) 550 2,300
Expenses 2,700 1,400 3) 200 4,300
Net income 5,000 1,510 8) 510 9) 200 3,800
21,300 21,300 9,050 9,050 24,300 24,300
R/E Statement
R/E, Jan 1 3,400 3,400
Net income 5,000 1,510 9) 200 8) 510 3,800
Dividends declared -
R/E, Dec 31 7,200
7,200 7,200
Statement of Fin. Position
Cash 10,700 4,200 14,900
Inventory, Dec 31 1,300 540 2) 550 7) 90 2,300
Branch 7,000 3) 200 -
4) 6,800
Unrealized profit 600 5) 500 -
6) 100
Home office 6,250 4) 6,800 1) 550 -
Common stock 10,000 10,000
R/E, Dec 31 7,200
19,000 19,000 6,250 6,250 17,200 48
17,200
 Unrealized Profit on Branch Inventory
Beg balance 100

Shipment to B 500

600

Unrealized Profit on Branch Inventory

Branch P/L 510 Beg balance 100

Ending balance 90 Shipment to B 500

600 600

49
 HO Branch Elimination Combined
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Income statement
Sales 15,000 7,000
Beginning inventory 1,600 1,500
Purchases 12,000 1,200
Shipment to branch 5,000
Shipment from HO 4,950
Ending inventory 1,300 540
Expenses 2,700 1,400
Net income 5,000 1,510
21,300 21,300 9,050 9,050
R/E Statement
R/E, Jan 1 3,400
Net income 5,000 1,510
Dividends declared
R/E, Dec 31

Statement of Fin. Position

Cash 10,700 4,200
Inventory, Dec 31 1,300 540
Branch 7,000

Unrealized profit 600

Home office 6,250

Common stock 10,000
R/E, Dec 31
19,000 19,000 6,250 6,250 47
 HO Branch Elimination Combined
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Income statement
Sales 15,000 7,000
Beginning inventory 1,600 1,500
Purchases 12,000 1,200
Shipment to branch 5,000
Shipment from HO 4,950
Ending inventory 1,300 540
Expenses 2,700 1,400
Net income 5,000 1,510
21,300 21,300 9,050 9,050
R/E Statement
R/E, Jan 1 3,400
Net income 5,000 1,510
Dividends declared
R/E, Dec 31

Statement of Fin. Position

Cash 10,700 4,200
Inventory, Dec 31 1,300 540
Branch 7,000

Unrealized profit 600

Home office 6,250

Common stock 10,000
R/E, Dec 31
19,000 19,000 6,250 6,250 47
 HO Branch Elimination Combined
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Income statement
Sales 15,000 7,000
Beginning inventory 1,600 1,500
Purchases 12,000 1,200
Shipment to branch 5,000
Shipment from HO 4,950
Ending inventory 1,300 540
Expenses 2,700 1,400
Net income 5,000 1,510
21,300 21,300 9,050 9,050
R/E Statement
R/E, Jan 1 3,400
Net income 5,000 1,510
Dividends declared
R/E, Dec 31

Statement of Fin. Position

Cash 10,700 4,200
Inventory, Dec 31 1,300 540
Branch 7,000

Unrealized profit 600

Home office 6,250

Common stock 10,000
R/E, Dec 31
19,000 19,000 6,250 6,250 47
50
 :
705,000 81,000
550,000 335,000
700,000 100,000
457,000
1,090,000
810,000
160,000 190,000
235,000
315,000
- 2,500,000
600,000
2,650,000 1,970,000
2,050,000 600,000
750,000
845,000
49,000 36,000
484,000 478,000
6,895,000 6,895,000 2,475,000 2,475,000

25X3

12. On January 15, 20X2, Marine, Inc., shipped outboard motors costing $12,000 to its Seaport
branch. Seaport was billed $18,000 plus freight (prepaid by Marine) of $760. On January 20, 20X2,
Marine directed Seaport to ship 25% of this merchandise to the Bayview branch, which was
temporarily out of stock for certain models. Additional freight cost, paid by Bayview, was $200.
Periodic inventory systems are used.
REQUIRED:
1. Prepare the journal entries made by Marine, Inc., and the Seaport branch relative to the
shipment made on January 15, 20X2.
2. Prepare the journal entries made by all three business units relative to the January 20 shipment,
assuming that transportation direct from Marine to Bayview cost $300.

- 10 -
 บัญชี าขา บัญชี ํานักงานใ ญ
ยอดคงเ ลือ 36,000 Dr. XXX Cr.
ินคารับคืนจาก าขา 900 Cr.
คาใชจายที่ยังไมไดโอนไปใ  าขา 5,520 Dr.
คาใชจายรับโอนจาก ํานักงานใ ญที่ยังไมบันทึก 1,980 Cr.
ยอดคงเ ลือที่ถูกตอง 40,620 Dr. 40,620 Cr.

ยอดคงเ ลือของบัญชี ํานักงานใ ญใน มุดบัญชีของ าขา (กอนปรับปรุงรายการ) เทากับ 38,640 บาท (เครดิต)

12.
1)
Journal Entries for Home Office
20 X1
May 15 Seaport branch 1 8 7 6 0
Cash 7 6 0
Shipment to Seaport branch 1 2 0 0 0
Unrealized profit 6 0 0 0

Journal Entries for Seaport Branch

20 X1
May 15 Shipment from home office 1 8 0 0 0
Freight-in 7 6 0
Home office 1 8 7 6 0

2)
Journal Entries for Seaport Branch
20 X1
May 28 Home office 4 6 9 0
Shipment from home office 4 5 0 0
Freight-in ($760 x 25%) 1 9 0

Journal Entries for Bayview Branch

20 X1
May 28 Shipment from home office 4 5 0 0
Freight-in 3 0 0
Cash 2 0 0
Home office 4 6 0 0

Journal Entries for Home Office

20 X1
May 28 Shipment to Seaport branch 3 0 0 0
Unrealized profit 1 5 0 0
Bayview branch 4 6 0 0
Loss on excessive freight charge 9 0
Seaport branch 4 6 9 0
Shipment to Bayview branch 3 0 0 0
Unrealized profit 1 5 0 0