Answer:
(a) To record the repair to the transmission on one of its delivery vans, the resulting journal entry is:
(Dr) Repairs and Maintenance Expense, $2,300
(Cr) Cash, $2,300
The repair of the transmission is an expenditure that returns the vehicle to its previous operating condition. The repair results in an increase to Repairs and Maintenance Expense (an increase to an expense is a debit) and a decrease to Cash (a decrease to an asset is a credit).
(b) To record the installation of a GPS system in one of its delivery vans, the resulting journal entry is:
(Dr) Delivery Van, $450
(Cr) Cash, $450
The installation of the GPS system is a permanent addition to the van that has increased its capability and should be capitalized. The addition results in an increase to Delivery Van (an increase to an asset is a debit) and a decrease to Cash (a decrease to an asset is a credit).
Answer:
Allocated MOH= $420
Explanation:
<u>First, we need to calculate the predetermined overhead rate:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (253,600/31,700) + 6
Predetermined manufacturing overhead rate= $14 per machine hour
<u>Now, we can allocate overhead to Job L716:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 14*30
Allocated MOH= $420
Answer:
$1,420
Explanation:
Cash account is normally a debit balance (as an asset) and debit entries represent a receipt of cash (an increase) while credit entries represent an outflow (a reduction) of cash.
The cash balance is as such the net between the debit balances and the credit entries posted.
The Cash account has a balance of
= $3540 - $2120
= $1,420
<span>Specialty-line wholesaler is what you're looking for.
Hope this helps!</span>