487
Problem 11-2
home office.
from other distributors.
4. Advertising costs of P40,000, sales commissions of P65,000, and other operating costs of P45,000 were incurred and paid by the branch. 5. The branch paid P370.00 on account to other distributors and remitted P120,000 to the home office.
Required: Record each of the transactions on the books of the branch. a. b.. Prepare an income statement for the branch for 2016. Prepare a statement of financial position as of December 31,2016,for the branch. c.