Answer: Please see answer in explanation column
Explanation:
a) Due date = April 22+90 days = July 21
b) Maturity value = 96,000+(96,000*6%*90/360) = $97,440
c1) Journal entry for receipt of note by Bork Furniture
journal Debit Credit
Notes receivable $96,000
Account receivable $96,000
C2) Journal entry to record receipt of payment at maturity
journal Debit Credit
Cash $97,440
Notes receivable $96,000
Interest revenue $1,440 (97,440-96,000)
Answer and Explanation:
The preparation of the First stage allocation of overhead costs to the activity cost pools is presented below
Particulars Making awnings Job Support Other Total
Production Overhead $67,500 $60,000 $22,500 $150,000
Office Expenses $8,000 $65,000 $27,000 $100,000
The production overhead is allocated in 45% 40%, 15% and 100%
And,
The office expenses is allocated in 8%, 65%, 27% and 100%
The same is shown above
GAAP requires you to use accrual based accounting (where revenue is earned and expenses are incurred) and not cash based.
So, The type needed is choice A.
