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The Home Office of Carnival Company Bills Its Only Branch

Question 18

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The home office of Carnival Company bills its only branch at 30% above home office cost for all merchandise shipped to the branch. During 2006, the home office shipped merchandise to the branch at billed prices of $104,000. Branch inventories for 2006 were as follows:
The home office of Carnival Company bills its only branch at 30% above home office cost for all merchandise shipped to the branch. During 2006, the home office shipped merchandise to the branch at billed prices of $104,000. Branch inventories for 2006 were as follows: Prepare journal entries (including adjusting entries) for the home office of Carnival Company for 2006 to reflect the foregoing information. Prepare journal entries (including adjusting entries) for the home office of Carnival Company for 2006 to reflect the foregoing information.

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