CHAPTER 12 MULTIPLE MULT IPLE CHOICE 12-1:
d. This is recorded when when the working fund is replenished.
12-2:
c.
Sales Cost of goods sold: Purchases Merchandise inventor, end $ross profit %&penses Net income (loss) 12-3:
P800,000 !80,000
"#0,000 P 80,000 !'8,000 P (!!8,000)
b
Sales Cost of goods sold (P70,000 * !+0) $ross profit ess: Sa Sa/ples (P8,000 P",000) %&penses Net income 12-4:
P 700,000
P
70,000 -0,000 P #0,000 P #,000 #,800 P
+,800 15,200
a
Sales Cost of goods sold $ross profit %&penses (P',000 1 P+,-00) Net income 12-5:
a
12-6:
a
12-7:
c
12.8
a
Ship/ent of /erchandise to ho/e office %3uip/ent sent to ho/e office %&penses assigned to 4ranch 4 the ho/e office Cash re/ittance to ho/e office Home office account balance balance
P !00,000 7#,000 P #8,000 !2,-00 P !+,-00
P 80,000 -0,000 8,000 (+0,000) P '8,000
!
12-9:
d
12-10: a
5o/e 6ffice account 4alance 4efore closing, ec. 2#, !008 P 2-,000 et inco/e (loss) Sales P!+7,000 Cost of cost goods sold Ship/ent to 4ranch P!2-,000 9nventor, !#*2! !8,-00 !!",-00 $ross profit P 20,-00 %&penses !2,-00 !7,00 ,000 5o/e 6ffice account 4alance (Investment in Branch account balance ) P -#,000 Ship/ent to ranch account has no 4eginning 4alance, 4ecause this was closed at the end of #008. 12-11: b
Pett cash fund ;ccounts receiva4le 9nventor Home Office account balance balance
Jan. 1, 2008 P ",000 8",000 7+,000 P166,000
Jan. 1, 2009 P ",000 '8,000 8#,000 P186,000
12-12: d
e/ittance in transit Ship/ent in transit Cash collections of ho/e office A!uste balances, "ec# $1
(!a"c# (!a"c # $$%&' $$%&' Home Office P #!,2#0
7,#80 ( +00) P %8,%00
(H$) (H$) O** O**+c) +c) $$%&' $$%&' Investment in Branch Branch P 28,"00 (!0,+00)
P %8,%00
12-13: a
P+20,000 (-,-00) ( "0 "00) (',000) P1 ,*00
#
12-14: a
4 4ranch %rror in recording of 4ranch profit >eturns of /erchandise in transit A!uste balances, 1%$1 1%$1
(!a"c# $$%&' (H$) O**+c) $$%&' Home Office Investment in Branch P '7,2-0 P 8+,000 ",!-0 #-,000 '00 ( ",+00) P10$,+00 P10$,+00
12-15: a
(!a"c# $$%&' Home Office collected 4 ho/e office Merchandise returns in transit ( !,#00) %rror in recording 4ranch profit ( 2,"00) A!uste balances P%$,+0
(H$) O**+c) $$%&' Investment in Branch P#7,2-0
(2,000)
P%$,+0
12-16: c e/ittance in transit Ship/ent in transit %&penses allocated %rror in recording re/ittance %rror in recording ship/ents &na!uste balance ' Home Office account
e/ittance in transit Ship/ent in transit %&penses allocated %rror in recording ship/ents A!uste balances 12.17
P 8-,000 (!0,000) (#0,000) ( -,000) 2,000 ( ',000) P ,000
( !a"c# $$%&' Home Office P ++,000
(H$)O**+c) $$%&' Investment in Branch P 8-,000 (!0,000)
#0,000 -,000 (2,000) ',000 P 7-,000
P 7-,000
(!a"c# $$%&' Home Office
(H$) O**+c) $$%&' Investment in
a
Branch
collected 4 5o/e 6ffice Ship/ents in transit ;c3uisition of furniture Merchandise returns Cash re/ittance in transit A!uste balances
P ++0,000 ( 8,000) 2#,000
P 6,000 6,000
P +'",000
(!#,000) (!-,000) ( -,000) P 6,000
2
PROLEM, P!$b) 12-1 H$) O**+c) $$%&
1. Investment in branch Cash ash
30,000
2. Investment in branch !hi" !hi"me ment nt to bran branch ch
5,000
!a"c# $$%&
Cash 30, 30,000 000
5,0 5,000 00
3. #o entr$
(. #o entr$
5. !hi"ment to branch Inve Invest stme ment nt in bran branch ch
30,000 Home ome offic fficee
30,0 30,000 00
!hi"ment from home office Home Home offi office ce
5,000
P%rchases &cco%nts "a$ab'e
10,000
5,0 5,000 00
10,000
&cco%nts receivab'e !a'es 2,000 2,00 2,000 0
). #o entr$
125,000 125,000
Home office 2,000 !hi" !hi"me ment nt from from home home offi office ce Cash
105,000 &cco%nts receivab'e receivab'e
. #o entr$
9. Investment in branch &cc%m cc%m%' %'a ate te e" e"/n
10. Cash Inve Invest stme ment nt in bran branch ch
105,000
&cco%nts "a$ab'e ,000
8. #o entr$
,000 Cash
!a'aries >ent *ti'ities Other o"eratin+ e"enses 29,500 ,500 ,5 ,500
)5,000
2,00 2,000 0
10,000 -,000 2,000 12,000 Cash
-e"reciation ent Ins%rance Home office
1,500 5,0 5,000 1,000 ,500
Home office
)5,000
)5,0 )5,000 00
Cash Cash )5,000
11. Cash
3,000 Invest Investme ment nt in branch branch
12. Investment in branch Bran Branch ch inco income me
3,000 3,000 10,000 10,0 10,000 00
Home office &cco% &cco%nts nts recei receivab vab'e 'e !a'es Inve Invent ntor or$, $, en en
3,000
125,000 5,00 5,000 0 !hi" !hi"me ment nt from from
3,000 3,000
HO
3,000 P%rchases P%rchases
10,000
+
10,000
!a'aries ent *ti'ities
10,000 2,000 Other Other o"eratin+ o"eratin+ e"enses e"enses
12,500 Home office
10,000
Pro4le/ !#?# a.
$$%& $* #) !a"c#
1.
2.
3.
Cash erchanise erchanise inventor$ Home office
200,000 350,000
erchanise inventor$ &cco%nts "a$ab'e
(00,000
&cco%nts receivab'e !a'es
)50,000
Cost of +oos so' erchanise erchanise inventor$
(25,000
Cash
)00,000
550,000
(00,000
)50,000
(25,000
&cco%nts receivab'e receivab'e (.
5.
b.
&vertisin+ e"ense !a'es commission Other e"ense Cash &cco%nts "a$ab'e Home office Cash
(0,000 )5,000 (5,000 150,000 30,000 120,000 (90,000
Ma"+a ,a)& / aa !a"c# I"c$) ,a))" )a! E"d)d )c)b)! 31 2008
Sales Cost of goods sold $ross profit %&penses: ;dvertising e&pense Sales co//issions 6ther e&penses et inco/e c.
)00,000
P"-0,000 +#-,000 ##-,000 P+0,000 "-,000 +-,000
!-0,000 P 7-,000
Ma"+a ,a)& / aa !a"c# aa"c) ,#))
-
)c)b)! 31 2008
Cash ;ccounts receiva4le Merchandise inventor Total assets
P!"0,000 -0,000 2#-,000 P-2-,000
;ccounts paa4le 5o/e office
P
20,000 -0-,000
Total lia4ilities and capital
P-2-,000
Pro4le/ !#?2 H$) O**+c) $$%&
!a"c# $$%& (1' A!ustin- .ntries
a. 9nvest/ent in 4ranch Cash
"2,7-0
b. 9nvest/ent in 4ranch Ship/ent to 4ranch
7-,200
c. ;ccounts receiva4le Sales
!-7,-00
d. Purchases ;ccounts paa4le
!82,7-0
). Cash
!70,+00
Cash "2,7-0
5o/e office Ship/ent fro/ 56 5o/e office
7-,200
72,200
'',000
!-7,-00
;ccounts receiva4le Sales
!82,7-0
Purchases 22,7-0 ;ccounts paa4le 22,7-0 Cash
;ccounts receiva4le
*. ;ccounts paa4le Cash . %& %&penses Cash
@urniture A fi&tures 4ranch 9nvest/ent in 4ranch #. Cash
"2,7-0
!70,+00
!8",000 !8",000 2','00
7-,200
'',000
80,!00 ;ccounts receiva4le
5o/e office Cash
80,!00
;ccounts paa4le Cash
!8,27-
80,!00
80,!00
!8,27-
? 2','00
!#,000 !#,000 80,!00
9nvest/ent in 4ranch
5o/e office Cash
!#,000 !#,000
? 80,!00 %&penses Cash
+. >etained earnings Cash
"2,7-0
#7,000 #7,000
!-,000 !-.000
(%) A!ust A!ustinin- .ntrie .ntriess %&penses . %& ;cc. epreciation % . 9nvest/ent in 4ranch ;cc. epBn r. @ A @
!,7-0 !,7-0 '7'7-
%&penses 5o/e office
'7'7-
"
. Prepaid e&penses %&penses
27-
. %&penses ;ccrued e&penses
!-0
27-
Prepaid e&penses %&penses
!,!#-
!-0
%&penses ;ccrued e&penses
!,!#+-0 +-0
/losin- .ntries H$) O**+c) $$%& ". Sales Ship/ents to 4ranch Merchandise inv., !#*2! Merchandise inv. !*! Purchases %&penses 9nco/e su//ar
!-7,-00 7-,200 7#,7-0
o. ranch loss 9nvest/ent in 4ranch
#,!00
. 9nco/e su//ar ranch loss
#,!00
. 9nco/e su//ar >etained earnings
3.
!a"c# $$%&
"0,!80 !82,7-0 +!,++#0,!7-
#,!00
Sales '',000 Merchandise inv., !#*2! 2-,#-0 9nco/e su//ar #,!00 Purchases 22,7-0 Ship/ent fro/ 56 7-,200 %&penses #7,200
5o/e office #,!00 9nco/e su//ar
#,!00
#,!00 !8,07!8,07-
Iniviual inancial tatements tatements C)b C$a" / H$) O**+c) I"c$) ,a))" )a! E"d)d )c)b)! 31 2008
Sales Cost of sales Merchandise inventor, !*! Purchases $oods availa4le for sale Ship/ent to 4ranch $oods availa4le for own sale Merchandise inventor, !#*2! $ross profit %&penses et operating inco/e ranch inco/e (loss) et inco/e
P!-7,-00 P "0,!80 !82,7-0 P#+2,'20 ( 7-,200) P!"8,"20 ( 7#,7-0)
'-,880 P "!,"#0 +!,++P #0,!7( #,!00) P !8,07-
C)b C$a" / !a"c# I"c$) ,a))" )a! E"d)d )c)b)! 31 2008
Sales Cost of sales Purchases
P '',000 P 22,7-0
7
Ship/ents fro/ ho/e office $oods availa4le for sale Merchandise inventor, !#*2! $ross profit %&penses et inco/e (loss) (loss)
7-,200 P!0',0-0 2-,#-0
72,800 P #-,#00 #7,200 P( #,!00)
C)b C$a" / H$) O**+c) aa"c) ,#)) )c)b)! 31 2008 Assets Cash ;ccounts receiva4le Merchandise inventor, !#*2! Prepaid e&penses @urniture and fi&tures ess: ;ccu/ulated depreciation ranch furniture and fi&tures ess: ;ccu/ulated depreciation 9nvest/ent in 4ranch Total assets 2iabilities an toc3holers4 toc3holers4 .5uit iabi'ities ;ccrued e&penses ;ccounts paa4le Total lia4ilities !tocho'ers/ 4%it$ Capital stock >etained earnings Total lia4ilities and stockholdersB e3uit
P 2+,800 #8,-77#,7-0 2,07P20,000 8,270
#!,"20 P!#,000
'7-
!!,0#+-,8#P#!7,"80
P
#,0#2!,'-0 P 22,'7P 7-,000 !08,70-
!82,70P#!7,"80
C)b C$a" / !a"c# aa"c) ,#)) )c)b)! 31 2008 Assets Cash ;ccounts receiva4le Merchandise inventor, !#*2! Prepaid e&penses Total assets
P ",27!8,000 2-,#-0 !,!#P"!,"-0
2iabilities an /a7ital /a7ital ;ccounts paa4le 5o/e office Total lia4ilities and capital
P +-0 !-,27P"!,"-0
8
#
/ombine inancial tatements C)b C$a" C$b+")d I"c$) ,a))" )a! E"d)d )c)b)! 31 2008
Sales Cost of sales Merchandise inventor, !*! Purchases $oods availa4le for sale Merchandise inventor, !#*2! $ross profit %&penses Co/4ined net inco/e
P#-",-00 P "0,!80 #!7,-00 P#77,"80 !08,000
!"',"80 P 8",8#0 "8,7+P !8,07-
C)b C$a" aa"c) ,#)) )c)b)! 31 2008
Assets Cash ;ccounts receiva4le Merchandise inventor Prepaid e&penses @urniture and fi&tures ess: accu/ulated depreciation Total assets
P +!,!7+7,+7!08,000 +,#00 P+#,000 ',2+-
2iabilities and StockholdersB %3uit ;ccrued e&penses ;ccounts paa4le Capital stock >etained earnings Total lia4ilities and stockholdersB e3uit
2#,"-P#22,-0-
P
#,+7+7,2#7-,000 !08,70P#22,-0-
P!$b) 12-4 !a"c# $$%&
H$) O**+c) $$%& (a' a"d (b' /losin- .ntries
Sales !+-,000 9nventor, !#*2! "0,000 9nventor, !*! Ship/ents fro/ 56 %&penses 9nco/e su//ar
!8,000 !+-,000 #0,000 #2,000
Sales -"0,000 9nventor, !#*2! '0,000 Ship/ents to 4ranch !+-,000 9nventor, !*! Purchases %&penses 9nco/e su//ar
+-,000 -+0,000 '0,000 !#0,000
'
9nco/e su//ar 5o/e office
##,000
9nvest/ent in 4ranch ranch inco/e
##,000
##,000 ##,000
ranch inco/e ##,000 9nco/e su//ar ##,000 9nco/e su//ar !+#,000 >etained earnings !+#,000
C; C$!$!a+$" C$b+")d ,a))" <$!%+" Pa)! )a! E"d)d )c)b)! 31 2008
Home Office )b+& Cash ;ccounts receiva4le 9nventor, !*! 9nvest/ent in 4ranch %3uip/ent (net) Purchases Ship/ents fro/ 56 %&penses Total de4its
2",000 -+,000 +-,000 70,000 '-,000 -+0,000 '0,000 '20,000
Branch
.liminations
"ebit
/reit
7,000 #',000 !8,000
Income tatement "r (/r)
+2,000 82,000 "2,000 (#) 70,000 '-,000 -+0,000
!+-,000 #0,000 #!',000
(!)!+-,000 !!0,000
9nventor !#*2! (S) Total assets C!)d+& ;ccounts paa4le 5o/e 6ffice Capital stock >etained earnings, !*! Sales Ship/ents to 4ranch Total credits
9nventor, !#*2! (9S)
!-0,000 27!,000
#7,000
+,000 70,000
-+,000 !++,000 -"0,000 !+-,000 '20,000
#!',000
'0,000
"0,000
2!,000 (#) 70,000 -+,000 !++,000
!+-,000
(70-,000) (!)!+-,000
(!-0,000) #! #!-,000
et inco/e Total lia4ilities A e3uit 1. 2.
Balance heet
#!-,000 !+#,000
!+#,000 27!,000
6o e'imin e'iminate ate shi"me shi"ments nts to branc branch h an shi"ment shi"mentss from from HO 6o e'im e'imina inate te reci" reci"ro roca' ca' acco acco%nt %nts. s.
!0
Pro4le/ !#?(1'
O!$ C$a" <$!%+" <$!%+" Pa)! *$! C$b+")d ,a))"& )a! E"d)d )c)b)! 31 2008
Home Office
Branch
)b+& Cash otes receiva4le receiva4le ;ccounts receiva4le (net) 9nventories @urniture A fi&tures (net) 9nvest/ent in ranch Cost of goods sold 6perating e&penses
"2,000 !0,-00 !#0,"00 !+2,700 7#,!-0 !#+,0-0 200,7-0 !0+,#-0
!#8,700 2#,8-0
Totals
'2',000
#7-,700
C!)d+& ;ccounts paa4le Co//on stock >etained earnings 5o/e 6ffice Sales
-+0,000
Totals
'2',000 '2
.liminations "ebit /reit
Income tatements "r (/)
#!,'00 --,'-0 2",200
Balance heet
8+,'00 !0,-00 !7",--0 +-,000 7#,!-0
(#)!2-,000 (!)!#+,0-0 (#)!2-,000
-"+,0-0 !27,!00 28',!00
"!,-00 200,000 27,-00
"!,-00 200,000 27,-00 !#+,0-0 !-!,"-0 #7-,700
et 9nco/e
(!)!#+,0-0 ("'!,"-0) #8',0-0
#8',0-0 ','00
(','00) 28',!00
(!) To eli/ eli/ina inate te ship ship/e /ents nts (#) To eli/inate eli/inate reciproca reciprocall accounts accounts..
/losin- .ntries 2.
!a"c# $$%&
Sales 9nco/e Su//ar Cost of goods sold 6perating e&penses 5o/e 6ffice 9nco/e su//ar
3. H$) O**+c) $$%& !-!,"-0 ','00 !#8,700 2#,8-0 ','00 ','00
ranch loss ','00 9nvest/ent in ranch
','00
!!
9nco/e su//ar ranch loss
','00 ','00
Pro4le/ !#?" a.
b.
Investment in Branch account (Home Office Office Boo3s)
P!28,#00 ( +-,000) ( !-,000) ",000 P 8+,#00
Home Office account (Branch Boo3s) Boo3s)
P('2,000) ( #00) !#,000 ( 2,000) P(8+,#00)
A!ustin- .ntries Home Office Boo3s
Branch Boo3s
6ther inco/e 9nvest/ent in 4ranch >iDal
+-,000
Cash
!-,000
#00 #00
+-,000
9nvest/ent in 4ranch? >iDal 9nvest/ent in 4ranch ;ccu/ulated depBn
Salar e&pense 5o/e office
5o/e office Ship/ents fro/ 56
!#,000 !#,000
!-,000 ",000 ",000
epreciation e&pense 5o/e office
2,000 2,000
Pro4le/ !#?7 a.
Investment in Branch account (Home (Home Office Office Boo3s)
P!"",+00 (20,000) (!#,000) P!#+,+00
Home Office Office account (Branch Boo3s)
P!02,#00 7,#00 #+,000 8,000 ( !8,000) P!#+,+00
!#
b.
A!ustin- .ntries H$) O**+c) $$%& Cash 20,000 Ship/ent to 4ranch !#,000 9nvest/ent in 4ranch +#,000
!a"c# $$%& Ship/ent fro/ 56 #+,000 Supplies 8,000 %&penses 7,#00 ;ccounts receiva4le !8,000 5o/e office #!,#00
Pro4le/ !#?8 (1'
econciliation tatement tatement O**+c) $$%&' $$%&' (!a"c# $$%&' (H$) O**+c) Investment in Branch Home Office
collected 4 4ranch Ship/ent in transit %rror in recording receipt of /erchandise e/ittance in transit, !*2! (2'
P-',7#0
P +2,#"8 +80
"00 ( ( +2#) (!#,800) P+7,088
!80)
P +7,088
Ad&+" E"!+)& H$) O**+c) $$%& >etained earnings Cash ;ccounts receiva4le 9nvest/ent in 4ranch
!a"c# $$%& +2# !#,800
;dvertising +80 Ship/ents fro/ 56 2,-#0 "00 Ship/ent fro/ 56 !#,"2# 5o/e office
!80 2,8#0
Pro4le/ !#?' (1'
!a"c# $$%& A!ustin- .ntries
Ship/ent fro/ ho/e office 6perating e&penses (P+,#00 1 P2,'00) 5o/e office
-7,"00 8,!00 "-,700
/losin- .ntries
Sales 9nventor, !#*2! (P ( P"+,-80 1 P-7,"00) 9nventor, !*! Ship/ent fro/ 56 (P"#2,#00 1 P-7,"00) 6perating e&penses 9nco/e su//ar
778,#00 !##,!80
9nco/e su//ar 5o/e office
!!",''0
+7,800 "80,800 -+,7'0 !!",''0
!!",'00
!2
(2'
H$) O**+c) $$%&
;ccounts receiva4le 9nvest/ent in 4ranch Cash (P#0,000 1 P!',#00)
+70 220 800
9nvest/ent in 4ranch ranch inco/e (3'
!!",''0 !!",'00
R)c$"c++a+$" , ,a a))"
H$) O** O**+c +c)) $ $$%& $%& !a" !a"c# c# $$ $$%& Investment in Branch) (Home Office) ( Investment P #0",2++ P !+0,'7+ #0,000 -7,"00 8,!00 !!",''0 !!",''0 ( +70) ( !',#00) P 2#2,""+ P 2#2,""+
Pro4le/ !#?!!!! a.
P #,000 Sales (P #7,000 1 P 22,000 1 P #",000) EEEEEEE. Cost of $oods Sold (P 2",000 1 P !8,000) EEEEEE. $ross Profit EEEEEEEEEEEEEEEEEE >ent %& %&pense EE EEEEEEEEEEEEEEEEE.. Propert Ta& %&pense EEEEEEEEEEEEEE epreciation %&pense EEEEEEEEEEEEEE Miscellaneous %& %&pense EE EEEEEEEEEEEEE. $en $eneral eral Corp Corpor orat atee %&pen &pensse EEEE EEEEEE EEEE EEEE EEEE EE et 9nco/e EEEEEEEEEEEEEEEEEE
4.
P 8",000 (-+,000) P 2#,000 P +,000 -,000 +,000 !!,000 ",000 ,000
(20,0 20,000 00)) P #,000
P !80,000 9nitial Tr Transfers EE EEEEEEEEEEEEEEEE. une 9nventor Ship/ent EEEEEEEEEEEE.. Propert Ta& Pa/ent EEEEEEEEEEEEE.. Septe/4er 9nventor Ship/ent EEEEEEEEEE
P !8 !88,000 !8,000 -,000 #",000
!+
%&pense ;llocation EEEEEEEEEEEEEE.. Cash Transfer EEEEEEEEEEEEEEEE... alance in in 5o 5o/e 6f 6ffice*ran ranch ;ccounts (c (correct) E. E..
c.
",000 ("2,000) P !80,000
ournal %n %ntries Tarlac r ranch !*!0*08
!*#0*08 #*!*08
+*!*08
-*!*08 "*-*08 7*"*08 '*'*08
!0*!*08
Cash EEEEEEEEEEEEE. 9nventor EEEEEEEEEEE. %3uip/ent EEEEEEEEEEE 5o/e 6ffice EEEEEEEE >ent %&pense EEEEEEEEEE Cash EEEEEEEEEEE. Cash EEEEEEEEEEEEE.. Sales EEEEEEEEEEE Cost of $oods Sold EEEEEEE.. 9nventor EEEEEEEEE. Cash EEEEEEEEEEEEE. Sales EEEEEEEEEE... Cost of $oods Sold EEEEEEE. 9nventor EEEEEEEEE Miscellaneous %&penses EEEEE. Cash EEEEEEEEEE... 9nventor EEEEEEEEEEE. 5o/e office EEEEEEE... Propert Ta& %&pense EEEEEE. 5o/e 6ffice EEEEEEE.. 9nventor EEEEEEEEEEE 5o/e 6ffice EEEEEEE.
Cash EEEEEEEEEEEEE Sales EEEEEEEEEE. Cost of $oods Sold EEEEEE.. 9nventor EEEEEEEE.. !!*!*08 Miscellaneous %&penses EEEE... Cash EEEEEEEEEE. !#*##*08 5o/e 6ffice EEEEEEEEE Cash EEEEEEEEEE. !#*2!*08 epreciation %&pense EEEEE. ;ccu/ulated depreciation E.. !#*2!*08 $eneral Corporate %&penses EEE 5o/e 6ffice EEEEEEE..
20,000 2",000 !##,000 !88,000 +,000 +,000 #7,000 #7,000 !8,000 !8,000 22,000 22,000 !8,000 !8,000 7,000 7,000 !8,000 !8,000 -,000 -,000 #",000 #",000
#",000 #",000 !8,000 !8,000 +,000 +,000 "2,000 "2,000 +,000 +,000 ",000 ",000
!-
d.
TARLAC RACH aa"c) ,#)) )c)b)! 31 2008
&ssets Cash EEEEEEEEEEEEEEEEE. 9nventor EEEEEEEEEEEEEEE. %3uip/ent EE EEEEEEEEEEEEEE... ;ccu/ulated epreciation EEEEEEEE. Total ;ssets EEEEEEEEEEE 4%it$ 5o/e 6fficeF EEEEEEEEEEEEE..
P P !##,000 (+,000)
28 28,000 #",000
!!8,000 P !8#,000
P !8#,000
F5o/e office 4alance is P !80,000 as co/puted in Part 4 plus the P #,000 net inco/e for the period.
!"
