Summary Advanced Accounting: Home Office and Branch

Investment in Branch (Asset)

1. Asset transferred to branch

Investment in Branch xx
Cash xx
Shipments to Branch xx

2. Expenses allocated to branch

Investment in Branch xx
Advertising Expense xx

3. Cash remittance

Cash xx
Investment in Branch xx

4. Net Income of Branch

Investment in Branch xx
Income Summary xx

Home Office Account (Equity)

1. Asset received from Home Office

Cash xx
Shipments from Home Office xx
Home Office xx

2. Expenses allocated

Advertising Expense xx
Home Office xx

3. Cash remittance

Home Office xx
Cash xx

4. Net Income of Branch

Income Summary xx
Home Office xx