Solution manual advanced accounting by baysa lupisan chapter 09

CHAPTER 9
SUGGESTED ANSWERS
EXERCISES
Exercise 9 - 1
Books of Branch R
Home Office
Cash

15,000
15,000
Books of Branch S

Cash
Home Office

15,000
15,000
Books of the Home Office

Branch S
Branch R

15,000
15,000

Exercise 9 - 2
Books of Branch No. 1
Home Office
Shipments from Home Office
Freight-In

1,950
1,600
350
Books of Branch No. 5

Shipments from Home Office
Freight-In
Cash
Home Office

1,600
400
350
1,650
Books of the Home Office

Branch No. 5
Excess Freight
Branch No. 1
Exercise 9 – 3

1,650
300
1,950
Home Office Books

1.

no entry

2.

Branch
Shipments to Branch
Allowance for Markup in Branch Inventory
120,000/240,000 = 50%

360,000
240,000
120,000

3.

no entry

4.

Branch
Advertising Expense
Depreciation Expense
Utility Expense
no entry

134,000

Cash

360,000

5.

40,000
70,000
24,000


AA1- Chapter 9 (2008 edition)

page 2

Branch
6.

no entry

7.

Branch
Branch Income

8.

9.

360,000

58,000
58,000

Allowance for Markup in Branch Inventory

Branch Income
P300,000 x 50/150 = P100,000

100,000

Branch Income
Income Summary

158,000

100,000

158,000
Branch Books

1.
2.
3.
4.

5.

6.

7.

Purchases
Accounts Payable

160,000

Shipments from Home Office
Home Office

360,000

Accounts Receivable
Sales

652,000

Advertising Expense
Depreciation Expense
Utility Expense
Home Office

40,000
70,000
24,000

160,000
360,000
652,000

134,000

Cash
Accounts Receivable

470,000

Home Office
Cash

360,000

Merchandise Inventory
Sales
Purchases
Shipments from Home Office
Advertising Expense
Depreciation Expense
Utility Expense
Income Summary

60,000
652,000

Income Summary
Home Office

Exercise 9 - 4
a. Merchandise inventory, beg.
Less Merchandise from home office at billed price
Markup on merchandise shipped to branch
Markup on current shipment (P96,000 – P80,000)

470,000
360,000

160,000
360,000
40,000
70,000
24,000
58,000
58,000
58,000

P150,000
P 36,000
16,000


AA1- Chapter 9 (2008 edition)

page 3

Markup on beginning inventory

P 20,000
x 120/20

Merchandise purchased from outsiders
b.

Allowance for Intercompany Inventory Profit
Branch Income
Bal. of allowance before adjustment
Adjusted balance of allowance acct

(P84,000 x 20/120)
Realized markup

120,000
P 30,000

22,000
22,000
P36,000
14,000
P22,000

Exercise 9 – 5
1.

Home Office Books
Branch
Shipments to Branch
Allowance for Markup in Branch Inventory
150,000/300,000 = 50%

2.

no entry

3.

Allowance for Markup in Branch Inventory
Branch Income
Realized markup on beginning inventory

P600,000 x 55% = P330,000 x 25/125*
Realized markup on current shipments
P450,000 x 1/3 = P150,000 x 50/150
Total
*(600,000 – 480,000) / 480,000 = 25%

450,000
300,000
150,000

116,000
116,000
P 66,000
50,000
P116,000

Branch Books
1.
2.

3.

Shipments from Home Office
Home Office

450,000

Accounts Receivable
Sales
P590,000 + P280,000 = P870,000

870,000
870,000

no entry

Exercise 9 – 6
1.
Branch
Cash
Shipments to Branch
Land
Allowance for Markup in Branch Inventory
Allowance on Transfer of Land
120,000/240,000 = 50%
2.

450,000

Branch
Shipments to Branch
Allowance for Markup in Branch Inventory
160,000/400,000 = 40%

820,000
80,000
240,000
300,000
120,000
80,000

560,000
400,000
160,000


AA1- Chapter 9 (2008 edition)

3.
4.

5.

6.

page 4

Branch
Branch Income

130,000

Allowance for Markup in Branch Inventory
Branch Income
Realized markup on 1st inventory transfer
Realized markup on 2nd inventory transfer
(P640,000 – P360,000) x 40/140
Total

200,000

130,000
200,000
P120,000
80,000
P200,000

Allowance on Transfer of Land
Branch Income

80,000
80,000

Branch Income
Income Summary

410,000
410,000

Exercise 9 - 7
Required balance of allowance (markup on branch ending inventory)
P9,600 x 20/120
Adjustment for realized markup
Balance of allowance before adjustment
Allowance on current shipment (P160,000 x 20%)
Allowance on branch beginning inventory
Markup rate
Branch beginning inventory, at cost

P 1,600
36,400

P38,000
32,000
P 6,000
÷ 20%
P30,000

Exercise 9 - 8
a. Merchandise available for sale at billed price (P16,200 + P20,250)
Merchandise available for sale at cost (P36,450/135%)
Unrealized intercompany inventory profit balance before adjustment
b.

c.

Unrealized Intercompany Inventory Profit
Branch Income
Balance before adjustment
Adjusted balance (P18,900 x 35/135)
Realized markup

P36,450
27,000
P 9,450
4,550
4,550

P 9,450
4,900
P 4,550

Home Office Books
Shipments to Branch
Unrealized Intercompany Inventory Profit
Branch

400
140

Branch Books
Home Office
Shipments from Home Office

540

Exercise 9 – 9
1. P20,000 ÷ 25/125 = P100,000

540

540


AA1- Chapter 9 (2008 edition)

2.

page 5

Allowance for Markup in Branch Inventory
Branch Income

P100,000 + P350,000 – P80,000 = P370,000 x 25/125 =
P74,000

Exercise 9 - 10
Separate cost of goods sold of the home office:
Inventory, beginning
Purchases
Shipments to branch
Cost of goods available for sale
Less Inventory, end
Separate cost of goods sold of the branch:
Inventory, beginning
From outside purchases
From home office (P36,000 / 120%)
Total
Purchases
Shipments from home office (P720,000 / 120%)
Cost of goods available for sale
Less Inventory, end:
From outside purchases
From home office (P42,000 / 120%)
Combined cost of goods sold
Exercise 9– 11
1.
Shipments from home office
Shipments to branch
Markup

74,000
74,000

P 252,000
2,800,000
( 600,000)
P2,452,000
240,000

P2,212,000

P

12,000
30,000
P 42,000
96,000
600,000
P 738,000
P10,000
35,000

Total
P450,000
375,000
P 75,000

45,000

Resold
P360,000
300,000*

P 60,000

693,000
P2,905,000
On Hand
P90,000
75,000**
P15,000

75,000 / 375,000 = 20%
*
**
2.

90,000 / 120% = P75,000

Cost of Goods Sold
Inventory
P60,000 + P450,000 – P90,000 = P420,000

3.
Inventory, beginning
Shipments
Total
Inventory, end
Cost of goods sold
Exercise 9 - 12
a. Merchandise Inventory, January 1
Add Shipments from Home Office
Cost of Goods Available for Sale

Cost of Goods Sold

Billed Price
P 60,000
450,000
P510,000
90,000
P420,000

420,000
420,000

Cost
P 50,000
375,000
P425,000
75,000
P350,000

Markup
P 10,000
75,000
P 85,000
15,000
P 70,000
P26,400
20,000
P46,400

AA1- Chapter 9 (2008 edition)

page 6

Sales, net of Sales Returns (P15,000 - P2,000)
Sales rate
Merchandise destroyed by fire at billed price
b.

P13,000
÷125%

Merchandise destroyed by fire at cost
Home Office Books
Branch Loss from Fire
Allowance for Markup in Branch Inventory
Branch
Branch Books
Home Office
Merchandise Inventory

Exercise 9 – 13
1. Branch Income
Cost of Goods Sold P230,000 x 15/115
Branch
2.
3.

10,400
P36,000

÷ 120%
P30,000

30,000
6,000
36,000
36,000
36,000
50,000
30,000
20,000

Home Office
Branch

520,000
520,000

Allowance for Markup in Branch Inventory
Inventory

9,000
9,000

PROBLEMS
Problem 9 – 1
Billed Price
Beginning inventory:
Acquired from vendors
Acquired from home office

Purchases from vendors
Shipments from Home Office P180,000 + P30,000
Total inventory available for sale
Less Ending inventory:
Acquired from vendors
Acquired from home office P60,000 + P30,000
Cost of goods sold

Cost

Markup

P100,000
40,000
240,000
210,000
P590,000

P100,000
32,000
240,000
168,000
P540,000

P 8,000
42,000
P50,000

40,000
90,000

P460,000

40,000
72,000
P428,000

18,000
P32,000

Problem 9 – 2
Home Office Books
a.
b.

c.
d.

Dagupan Branch
Cash

10,000

Dagupan Branch
Baguio Branch
Shipments to Branch

25,000
40,000

Furniture and Fixtures

Cash

17,500

Expenses
Dagupan Branch

10,000

65,000
17,500
800
800


AA1- Chapter 9 (2008 edition)

e.

f.
g.
h.
i.

j.

page 7

Baguio Branch
Sales Discounts

Accounts Receivable

29,400
600

Baguio Branch
Dagupan Branch

15,000

Shipments to Branch
Dagupan Branch

2,500

Dagupan Branch
Baguio Branch

1,800

30,000
15,000
2,500
1,800

Dagupan Branch
Shipments to Branch
Cash

20,100

Baguio Branch
Excess Freight
Dagupan Branch

20,110
35

20,000
100

20,145
Dagupan Branch Books

a.
b.

Cash
Home Office

10,000

Shipments from Home Office
Home Office

25,000

c.

no entry

d.

Home Office
Cash

e.
f.
g.
h.
i.

j.

no entry
Home Office
Cash

10,000
25,000

800
800
15,000
15,000

Home Office
Shipments from Home Office

2,500

Expenses
Home Office

1,800

2,500
1,800

Shipments from Home Office
Freight-In
Home Office

20,000
100

Home Office
Shipments from Home Office
Freight-In
Cash

20,145

20,100
20,000
100
45


AA1- Chapter 9 (2008 edition)

page 8

Baguio Branch Books
a.

no entry

b.

Shipments from Home Office
Home Office

40,000
40,000

c.

no entry

d.

no entry

e.

Cash
Home Office

29,400

Cash
Home Office

15,000

f.
g.

no entry

h.

Home Office
Cash

i.

no entry

j.

Shipments from Home Office
Freight-In
Home Office

29,400
15,000

1,800

1,800

20,000
110
20,110

Problem 9 – 3
Requirement 1
Home Office Books
1.
2.

3.
4.

Baguio Branch
Cash
Baguio Branch
Shipments to Branch
Allowance for Markup in Branch Inventory
Cash
Baguio Branch

20,000
20,000
259,000
185,000
74,000
245,000
245,000

Baguio Branch
Cash

7,000
7,000

5 – 7 - no entry
Baguio Branch Books
1.
2.
3.

Cash
Home Office

18,000
18,000

Shipments from Home Office
Home Office

257,600

Home Office
Cash

247,400

257,600

247,400


AA1- Chapter 9 (2008 edition)

4.
5.

6.
7.

page 9

Accounts Receivable
Home Office

2,400

Expenses
Home Office

7,000

Cash
Accounts Receivable
Sales
Expenses
Cash

2,400

7,000
247,400
40,600
288,000
21,000
21,000

Merchandise Inventory, end P30,100 + P1,400
Sales
Income Summary
Merchandise Inventory, beginning P257,600 + P1,400
Shipments from Home Office
Expenses
Income Summary
Home Office

Requirement 2
Baguio Branch
Branch Income

31,500
288,000
15,000
17,500
259,000
28,000
15,000
15,000
15,000
15,000

Allowance for Markup in Branch Inventory
Branch Income
(P17,500 + P259,000 – P31,500) x 40/140

70,000

Branch Income
Income Summary

85,000

70,000

85,000

Requirement 3
Shipments from Home Office
Home Office

1,400

Cash
Home Office

2,000

1,400
2,000

Problem 9 - 4
Requirement 1
Triple D Bookstore
Statement of Recognized Income and Expenses - Quezon City Branch
For the Year Ended December 31, 2008
Sales
Cost of Goods Sold:
Merchandise Inventory, beginning
Shipments from Home Office
Cost of Goods Available for Sale
Less Merchandise Inventory, end
Gross Profit
Operating Expenses:

P192,690
P 31,500
128,000
P159,500
22,750

136,750
P 55,940


AA1- Chapter 9 (2008 edition)

page 10

Advertising and Promotion
Depreciation

Uncollectible Accounts Expense
Others
Net income

P

6,400
2,400
1,250
36,600
P

Requirement 2
Branch
Branch Income

46,680
9,260

9,260
9,260

Allowance for Markup in Branch Inventory
Branch Income
P136,750 x 25/125

27,350

Branch Income
Income Summary

36,610

27,350

36,610

Problem 9 - 5
Branch Books
a.

b.

a.

b.
c.

d.
e.
f.

Sales
Merchandise Inventory, end
Income Summary
Merchandise Inventory, beginning
Shipments from Home Office
Selling Expenses
Administrative Expenses
Home Office

Income Summary
Home Office Books
Sales
Shipments to Branch
Merchandise Inventory, end
Merchandise Inventory, beginning
Purchases
Selling Expenses
Administrative Expenses
Income Summary

78,000
12,000
10,000
10,000
80,000
4,000
6,000
10,000
10,000
310,000
64,000
30,000
25,000
300,000
20,000
30,000
29,000

Branch Income

Branch

10,000

Allowance for Overvaluation in Branch Inventory
Branch Income
P18,000 - (P12,000 x 25/125) = P15,600

15,600

Branch Income
Income Summary

10,000
15,600
5,600
5,600

Income Tax
Income Tax Payable

12,110

Income Summary

12,110

12,110

AA1- Chapter 9 (2008 edition)

page 11

Income Tax
g.

12,110

Income Summary
Retained Earnings

22,490
22,490

Problem 9 - 6
Requirement 1
Triple F Products Inc. - Branch
Trial Balance
December 31, 2008
Debit
12,800
48,160
27,280

Cash
Accounts Receivable
Merchandise Inventory
Accounts Payable
Home Office

Sales
Cost of Sales
Operating Expenses

Credit

2,040
68,900
256,000
191,620
47,080
326,940

_______
326,940

Requirement 2
Home Office Books
a.

b.
c.

d.
e.
f.
g.

a.

Sales
Income Summary
Cost of Sales
Operating Expenses

640,600
41,360
452,840
146,400

Branch
Branch Income

17,300

Allowance for Overvaluation of Branch Inventory
Branch Income
P191,620 x 10/110
P21,100 ÷ (P202,400 + P29,700 – P21,100) = 10%

17,420

Branch Income
Income Summary

34,720

Income Tax
Income Tax Payable

26,628

Income Summary
Income Tax

26,628

Income Summary
Retained Earnings

76,080

Branch Books
Merchandise Inventory P202,400 – P189,200
Home Office

17,300
17,420

34,720
26,628
26,628
76,080
13,200
13,200


AA1- Chapter 9 (2008 edition)

b.

page 12

Sales
Income Summary
Cost of Sales
Operating Expenses

c.

Income Summary
Home Office
Requirement 3

256,000
17,300
191,620
47,080
17,300
17,300

Combined net income (P41,360 + P34,720 – P26,628)
Combined Merchandise Inventory:
Home Office
Branch [ P27,280 + P13,200) ÷110%

P49,452
P156,640
36,800

P193,440

Problem 9 - 7
Triple G Company
Combined Statement of Recognized Income and Expenses
for Home Office and Branch
For the Year Ended December 31, 2008
Sales
Cost of goods sold:
Merchandise inventory, beginning
Purchases
Cost of goods available for sale
Less Merchandise inventory, end
Gross profit
Operating expenses
Net income before Income Tax
Income Tax
Net Income

P325,000
P107,500
215,000
P322,500
81,300

241,200
P 83,800
50,000
P 33,800
11,830

P 21,970

Inventory:
Beginning
Ending
Home Office
P 80,000
Branch
P7,500 + (P24,000/120%)
27,500
P5,500 + (P26,000/125%)
Total
P107,500
** P37,500 – P30,000 = P7,500/ P30,000 = 25%
Requirement 2
Davao Branch Books
a. Sales
75,000
Merchandise Inventory, end
31,500
Income Summary
Shipments from Home Office
Purchases
Expenses
Merchandise Inventory, beginning

P55,000
26,300
P81,300

12,500
37,500
15,000
10,000
31,500


AA1- Chapter 9 (2008 edition)

page 13

b.

Income Summary
Home Office
Requirement 3

12,500
12,500
Home Office Books

a.
b.

c.

d.
e.
f.
g.

Davao Branch
Branch Income
Allowance for Markup in Branch Inventory
Branch Income
Markup on branch beginning inventory
(P24,000 x 20/120)
Markup on shipments
Allowance balance before adjustments
Markup on branch ending inventory
(P26,000 x 25/125)
Realized markup
Sales
Shipments to Branch
Merchandise Inventory, end
Income Summary
Purchases
Expenses
Merchandise Inventory, beginning

12,500
12,500
6,300
6,300
P 4,000
7,500
P11,500
5,200
P 6,300
250,000

30,000
55,000
15,000
200,000
40,000
80,000

Branch Income
Income Summary

18,800

Income Tax
Income Tax Payable

11,830

Income Summary
Income Tax

11,830

Income Summary
Retained Earnings

21,970

18,800
11,830
11,830

21,970

Problem 9 – 8
Requirement 2
a. Plant Assets
Branch

4,000

b.

Home Office
Accounts Receivable

2,000

Cash
Branch

5,000

Expenses
Home Office

1,000

Shipments from Home Office

3,000

c.
d.
e.

4,000
2,000
5,000
1,000


AA1- Chapter 9 (2008 edition)

page 14

Home Office
f.

g.
h.

Retained Earnings
Inventory
P15,000 x 20/120

3,000
2,500
2,500

Home Office
Branch

11,000

Sales
Shipments from Home Office

48,000

11,000
48,000


AA1- Chapter 9 (2008 edition)

page 15

MULTIPLE CHOICE
1.

B

3.

C

5.

D

7.

D


AA1- Chapter 9 (2008 edition)

2.

B

9

A

page 16

4.

D

6.

B

8.

D

10
11

12
13

C
C
D
C

P13,200 + P350 = P13,550
P11,000 + P350 = P11,350

14

A

P12,000 x 20/120 = P2,000

15

D

Inventory, beginning (P165,000 / 125%)
P132,000
Shipments (P110,000 / 125%)
88,000
Merchandise available for sale from home office at cost
P220,000
Cost of merchandise sold from home at cost
Sales, net of returns and allowances
P165,250

Less Sales from merchandise purchased from
outsiders (P7,500 x 120%)
9,000
Sales from merchandise from home office
P156,250
÷ 125%
Cost of sales at billed price
P125,000
Billed price rate
÷ 125%
100,000
Inventory destroyed by fire
P120,000

16

D

Balance of allowance before adjustment
Required balance of allowance (P1,170,000 x 20/120)
Realized markup

P370,000
195,000
P175,000

17

C

Sales
Cost of goods sold (P120,000 x 3/4 x 125%)
Gross profit
Operating expenses
Net income reported by the branch

P141,000
112.500
P 28,500
27,000
P 1,500

18

A

P50,400/120%

P42,000

19

B

P90,000 + P36,000 – P2,520 – P50,400/120% = P60,900

20

B

Net income (loss) reported by branch
Realized markup
(P90,000 + P36,000 – P2,520 - P50,400 = P73,080) x 20/120
True net income of the branch

(P 7,800)
12,180
P 4,380

21

B

Net income reported by branch
Realized markup [(P3,960 + P17,600 – P4,840) x 10/110]
Actual branch income

P 4,800
1,520
P 6,320

22

B

Branch ending inventory, at cost (P4,840 / 110%)
Home office ending inventory
Ending inventory to be reported in the combined balance sheet

P 4,400

11,200
P15,600

23

D

Net income reported by the branch

P 5,000


AA1- Chapter 9 (2008 edition)

page 17

Realized markup[P280,000 - (P50,000 – P6,600)] x 40/140
True net income of the branch

67,600
P 72,600

24

B

Branch inventory from home office (P43,400 /140%)
Branch inventory from outside purchases
Total cost of branch inventory, end

P31,000
6,600
P37,600

25

D

P60,000 - P7,500

P52,500

26

A

P60,000 - (P7,500 x 120/20)

P15,000

27

B

Sales
Cost of goods sold (P180,000 + P45,000 - P60,000)
Operating expenses
Realized markup [(P180,000 x 20/120) - P7,500
True net income of the branch

P 292,500
(165,000)
( 72,000)
22,500
P 78,000

28

A

Unadjusted balance of allowance account
Markup on 2008shipments from home office
(P390,000 – P300,000)
Markup on beginning inventory

P99,900
90,000
P 9,900
x 130/30

Total merchandise inventory beg
Merchandise from outside purchases
29

D

Sales
Cost of goods sold
(P54,600 + P390,000 + P144,600 - P48,750)
Operating expenses

Realized markup [P99,900 - (P39,000 x 30/130)]
True net income of the branch

P 42,900
54,600
P 11,700
P540,000
(540,450)
( 51,000)
90,900
P 39,450

30

C

P39,000 x 30/130 = P9,000

31

D

Sales (net of discount of P1,480)
Cost of goods sold (P104,000 - P12,500)
Operating expenses
Net income reported by branch

P115,520
( 91,500)
( 20,000)

P 4,020

32

C

Net income reported by branch
Realized markup (P91,500 x 25/125)
True net income of the branch

P 4,020
18,300
P 22,320

33

C

Sales
Cost of goods sold (P5,000 + P2,000 + P26,400 – P4,500)
Operating expenses
Realized markup [P2,800 – (P3,960 x 10/110)]
True profit of Cebu branch

P 37,400
( 28,900)
( 3,000)
2,440
P 7,940

34

D

Sales

P110,000


AA1- Chapter 9 (2008 edition)

page 18

Cost of goods sold
(P16,000 + P80,000 – P24,000 – P20,000)
Operating expenses
Net income of the home office
Net income of the branch
Combined net income of the home office and branch
35

36

C

A

Sales
Cost of sales:
Inventory, beginning

Purchases
Goods available for sale
Shipments to branch (P110,000/110%)
Goods available for own sale
Less Inventory, end
Gross profit
Expenses
Net income
Sales
Cost of sales:
Inventory, beginning (P11,550 – P1,000)
Shipments from HO, including freight-in
Goods available for sale
Less Inventory, end
[(P10,400 + P5,000)/110%] + P520 + P250
Gross profit
Expenses
True branch net income

( 52,000)
( 10,000)
P 48,000
7,940
P 55,940
P155,000

P 23,000
190,000
P213,000
100,000

P113,000
30,000

83,000
P 72,000
52,000
P 20,000
P140,000

P 10,550
105,750
P116,300
14,770

101,530
P 38,470
28,400
P 10,470

37

D

(P10,400 + P5,000) x 10/110

P1,400

38

B

Unadjusted balance of allowance account
Markup on 2008 shipments (P200,000 x 25%)
Markup on beginning inventory
Branch beginning inventory at billed price

P 57,500
50,000
P 7,500
x 125/25
P 37,500

39

C

Sales
Cost of goods sold (P37,500 + P250,000 - P40,000)
Operating expenses
Net income reported by branch

P400,000
(247,500)
(100,000)
P 52,500

40

C

Net income reported by branch
Realized markup (P247,500 x 25/125)
True net income of the branch

P 52,500
49,500
P102,000

41

B

Beginning inventory
Purchases

P

8,000
30,000


AA1- Chapter 9 (2008 edition)

Shipments from home office
Ending inventory
Cost of goods sold reported by branch
Realized markup [P19,750 - (P6,000 x 25/125)*
Cost of goods sold at cost

page 19

93,750
( 10,350)
P 121,400
( 18,550)
P 102,850

*P93,750 – P75,000 = P18,750/P75,000 = 25%
42

C

The amount of the realized markup of P18,550

43

C

Adjusted net income
Reported net income
Realized markup
Cost of sales at cost
(P70,000 + P350,000 – P84,000) – P96,000

P156,000
60,000
P 96,000
÷ P240,000
140%

44

C

P84,000 x 40/140

P24,000

45

A

72,500 ÷ (75,000 + 444,000 -84,000 – 72,500)

20%

46

D

P444,000 / 120%

P370,000

47

D

Sales
Cost of goods sold (P75,000 + P444,000 - P84,000)

Operating expenses
Realized markup [P72,500 - (P84,000 x 20/120)]
Adjusted profit of the branch

P 600,000
(435,000)
(200,000)
58,500
P 23,500

48

C

P84,000 x 20/120 = P14,000

49

A

P84,000 – P14,000 = P70,000

50

B

Home office inventory (P160,500 - P10,500)
Branch inventory (P108,000/120%)
Inventories reported in the combined balance sheet

P 150,000
90,000
P 240,000