ABASE HUMILIATE Co. is currently preparing its combined financial statements for the year ended December 31, 20×1. As of this date, the “Investment in branch” account has a balance of ₱380,000 while the “Home office” account has a balance of ₱528,000. The following information has been gathered:
        (a) The home office allocated unpaid utilities expenses amounting to ₱40,000 to the branch which the branch did not record in full. Instead, the branch sent a wrong adjusting memo to the home office reducing the charge by ₱10,000 and setting up a liability for the remaining amount.
        (b) The home office erroneously credited the branch for a return of shipment of merchandise worth ₱100,000. The branch did not make any return of merchandise.
        (c) The branch mistakenly received a copy of the home office correcting entry for item (b) above dated January 3, 20×2 and entered a credit in favor of the home office on December 31, 20×1.
        (d) The branch mistakenly sent the home office a debit memo amounting to ₱12,000 for an apparent remittance of collections which did not happen. The home office did not record the debit memo.

How much is the net adjustment to the “Home office” account? Indicate if it’s an increase or decrease. (Complete solution please)

ABASE HUMILIATE Co. is currently preparing its combined financial statements for the year ended December 31, 20×1. As of this date, the “Investment in branch” account has a balance of ₱380,000 while the “Home office” account has a balance of ₱528,000. The following information has been gathered:
        (a) The home office allocated unpaid utilities expenses amounting to ₱40,000 to the branch which the branch did not record in full. Instead, the branch sent a wrong adjusting memo to the home office reducing the charge by ₱10,000 and setting up a liability for the remaining amount.
        (b) The home office erroneously credited the branch for a return of shipment of merchandise worth ₱100,000. The branch did not make any return of merchandise.
        (c) The branch mistakenly received a copy of the home office correcting entry for item (b) above dated January 3, 20×2 and entered a credit in favor of the home office on December 31, 20×1.
        (d) The branch mistakenly sent the home office a debit memo amounting to ₱12,000 for an apparent remittance of collections which did not happen. The home office did not record the debit memo.

How much is the net adjustment to the “Home office” account? Indicate if it’s an increase or decrease. (Complete solution and steps please)

ABASE HUMILIATE Co. is currently preparing its combined financial statements for the year ended December 31, 20×1. As of this date, the “Investment in branch” account has a balance of ₱380,000 while the “Home office” account has a balance of ₱528,000. The following information has been gathered:
(a)    The home office allocated unpaid utilities expenses amounting to ₱40,000 to the branch which the branch did not record in full. Instead, the branch sent a wrong adjusting memo to the home office reducing the charge by ₱10,000 and setting up a liability for the remaining amount.
(b)    The home office erroneously credited the branch for a return of shipment of merchandise worth ₱100,000. The branch did not make any return of merchandise.
(c)    The branch mistakenly received a copy of the home office correcting entry for item (b) above dated January 3, 20×2 and entered a credit in favor of the home office on December 31, 20×1.
(d)    The branch mistakenly sent the home office a debit memo amounting to ₱12,000 for an apparent remittance of collections which did not happen. The home office did not record the debit memo.

How much is the net adjustment to the “Investment in branch” account? increase (decrease)
a. 100,000        
b. 48,000    
c. (48,000)    
d. (52,000)