Answer:
(a)
Dr Land 82,400
Cr Grant Revenue 82,400
(b)
Dr Buildings 641,100
Dr Land 182,900
Cr Share Capital—Ordinary 756,000
Cr Share Premium—Ordinary 68,000
(c)
Dr Machinery 42,488
Cr Direct Labor 16,230
Cr Factory Overhead 13,438
Cr Materials 12,820
Explanation:
City of Pebble Beach Journal entries
(a)
Dr Land 82,400
Cr Grant Revenue 82,400
(b)
Dr Buildings 641,100
Dr Land 182,900
Cr Share Capital—Ordinary 756,000
($54×$14,000)
Cr Share Premium—Ordinary 68,000
(c)
Dr Machinery 42,488
Cr Direct Labor 16,230
Cr Factory Overhead 13,438
Cr Materials 12,820
Fixed overhead applied (60% × $16,230) $9,738
Additional overhead 2,720
Factory supplies used 980
$13,438
