Answer:
<h3>Blue Spruce Corp.</h3>
The total credits on the company's trial balance at June 30, 2022 are:
Accumulated depreciation-equipment $66
Accounts payable 910
Unearned rent revenue 136
Common stock 246
Retained earnings 6800
Service revenue 382
Interest revenue 76
Totals $8,616
Explanation:
a) Data and Calculations:
Blue Spruce Corp.
Trial Balance as at June 30, 2022:
Accounts Title Debit Credit
Cash $1832
Accounts receivable 2858
Inventory 3904
Prepaid rent 96
Equipment 390
Accumulated depreciation-equipment $66
Accounts payable 910
Unearned rent revenue 136
Common stock 246
Retained earnings 6800
Service revenue 382
Interest revenue 76
Salaries and wages expense 170
Insurance expense 98
Totals $9,348 $8,616
b) The totals show that the trial balance is not in balance. This may be as a result of errors of omissions, commissions, transposition, etc.
Answer:
The company's days' sales in receivables is 22 days
Explanation:
In order to calculate the company's days' sales in receivables we would have to calculate first the total sales with the following formula:
Total Sales = Net Income / Profit Margin
= $190,000/9.4%=$2,021,276
Hence, Credit Sales = $2,021,276*0.85= $1,718,085
Accounts receivable turnover ratio = Credit sales / Accounts Receivable
= $1,718,085 /$106,351
= 16.15485
Therefore, Days sales in receivables = 365/16.15485= 22.59 days
The company's days' sales in receivables is 22 days
Answer:
Missing word <em>"a. Direct labor usage. b. Indirect labor usage. c. Total payroll paid in cash. Prepare journal entries for the above transactions for the month of May"</em>
<em />
S/n General Journal Debit Credit
a Work in Process inventory $265,000
($345,000 - $80,000)
Factory wages payable $265,000
(To record for Direct labor usage)
b Factory overhead $80,000
Factory wages payable $80,000
(To record for Indirect labor usage)
c Factory wages payable $345,000
Cash $345,000
(To record for Total payroll paid in cash)
Answer:
Predetermined overhead rate is $30
Explanation:
1- Predetermined Overhead rate is :
Budgeted Factory Overhead / Budgeted Machine hours
$1,980,000 / 66,000 hours = $30 per machine hour.
The predetermined overhead rate is estimated by company management for the per unit overhead. In this case the machine hours are used as cost driver and the estimated overhead is divided by machine hours to identify overhead cost per machine hour.
