Answer and Explanation:
The journal entries are shown below;
On Sept 15
Merchandise inventory $77,500
To Accounts payable $77,500
(Being purchase of inventory is recorded)
On Sep 29
Accounts payable $77,500
To Cash $75,175
To Merchandise inventory (3% of $77,500
) $2,325
(Being payment to suppliers after discount is recorded)
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>
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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)
In the bank reconciliation they will need to add the difference to the company’s cash balance. They subtracted too much (541-514 = $27 difference) from their cash balance. They need to add $27 to their cash balance so that it will be correct and balance with the bank.
The correct answer is: [A]: "static process" .
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