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Maru [420]
3 years ago
14

What is the purpose of a trial balance?

Business
1 answer:
SpyIntel [72]3 years ago
7 0
Preparing a trail balance for a company serves to detect any mathematical errors that have occurred in the double-entry accounting system. If the total debits equal the total credits, the trial balance is considered to be balanced, and there should be no mathematical errors in the ledgers. The trail balance is a working document used by accountants as the basis to prepare financial statements. The purpose is to ensure that for every debit listed there is a corresponding credit recorded, shares Accounting-Simplified. If the totals do not balance, an investigation may be made.
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A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's una
ollegr [7]

Answer:

Bad debt expense A/c Dr  $4,900

           To Allowance for doubtful debts  $4,900

(Being bad debt expense is recorded)

Explanation:

The journal entry is shown below;

Bad debt expense A/c Dr  $4,900

           To Allowance for doubtful debts  $4,900

(Being bad debt expense is recorded)

The computation of the bad debt expense is shown below:

= Net Credit sales × estimated percentage given  - credit balance of allowance for doubtful debts

= $920,000 × 0.6%  - $620

= $5,520 - $620

= $4,900

6 0
3 years ago
Primera Company produces two products and uses a predetermined overhead rate to apply overhead. Primera currently applies overhe
pychu [463]

Answer:

Primera Company

1. Plantwide predetermined overhead rate:

= $1,536,000/768,000

= $2.00 per direct labor hour

Overhead assigned to each product:

                                   Product 1    Product 2

Direct labor hours     480,000        147,200

Predetermined overhead

 rate  = $2 per direct labor hour

Total overhead =    $960,000    $294,400

2. Predetermined departmental overhead rates:

Department 1:    

Direct labor hours $2 ($1,536,000/768,000)

Department 2

Machine hours = $7.385 ($1,536,000/208,000)

Overhead assigned:

Product 1 = $960,000 (480,000 * $2)

Product 2 = $70,896 (9,600 * $7.385)

3. The applied overhead for the year:

Department 1 = $1,254,400 (627,200 * $2)

Department 2 = $1,512,448 (204,800 * $7.385)

Total   =            $2,766,848

Overapplied overhead for the firm = $1,134,848 ($2,766,848 - $1,632,000)

4. Debit Manufacturing overhead $1,134,848

Credit Cost of goods sold $1,134,848

To transfer the overapplied overhead to cost of goods sold.

Additional information needed if the variance is material is to determine the percentages to allocated to Work in process, Finished Goods, and Cost of Goods Sold.

Explanation:

a) Data and Calculations:

Estimates:

                            Department 1   Department 2      Total  

Direct labor hours    640,000            128,000        768,000

Machine hours            16,000            192,000        208,000

Overhead cost       $384,000       $1,152,000    $1,536,000

Actual results:

                            Department 1   Department 2      Total  

Direct labor hours     627,200             134,400       761,600

Machine hours             17,600            204,800      222,400

Overhead cost       $400,000       $1,232,000  $1,632,000

                       Product 1 Product 2        Total  

Direct labor hours:

Department 1 480,000    147,200      627,200

Department 2  96,000     38,400       134,400

Machine hours:

Department 1    8,000        9,600         17,600

Department 2 24,800    180,000      204,800

3 0
3 years ago
Toys-r-us is almost finished building a new store and will soon be having a grand opening celebration. management wants to build
drek231 [11]

Toys r us, the toy shop has always stood out in its advertising campaigns, using all conventional social networks, and paying to do the most original ads, spaces like Instagram, Twitter and Facebook are some of the social networking they would be using to show their potential customers the progress of the new store, but that does not end there, they will also invest big amounts of money in screens "Etch a Sketch" in bus stops, and vans promoting their new opening and inviting everyone to the big event.  
3 0
3 years ago
What is the most likely illegal scheme to evade estate taxes?
nata0808 [166]
I belive this is Undervaluing asserts.
hope this helps!
5 0
3 years ago
Who is the founder of toyota
alexira [117]
The answer is <span>Kiichiro Toyoda</span>
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3 years ago
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