Reference no: EM133147152

Question - On September 1, 2018, SYDNEY Co. established two branches: Manila and Quezon City Branches. The home office transferred P80,000 worth of cash and P350,000 worth of inventory to its Manila Branch and instructed Manila to transfer 3/4 of the goods and cash received to Quezon City. In addition, on November 1, 2018, shipments from the home office were received by Manila amounting to P125,000 and the branch paid freight costs amounting to P6,500. 3/5 of the said shipments were sold to outsiders. On December 1, 2018, Manila transferred half of the remaining. November shipments from the home office to Quezon City, with the Quezon City branch paying freight costs of P2,500. Had the merchandise been shipped from the home office to the Quezon City branch, only P1,900 worth of freight would have been incurred. Journalize the transactions in the books of the branches and the home office.