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3 years ago

Exercise 13-02 The following are selected 2020 transactions of Sandhill Corporation.

Business

1 answer:

Lorico [155]3 years ago

5 0

Explanation:

a. The journal entries are as follows:

1. Purchase A/c Dr $52,000

To Account payable A/c $52,000

(Being the purchase of inventory is recorded)

2. Account payable A/c $52,000

To Notes payable A/c

(Being the payment is done via note payable)

3. Cash A/c Dr $52,000

Discount on Note payable A/c Dr $4,400

To Note payable A/c $56,400

(Being the borrowed amount is recorded)

Interest expense A/c Dr $1,040

To Interest payable A/c $1,040

(Being the interest expense is recorded)

The computation is shown below:

= $52,000 × 8% × 3 months ÷ 12 months

= $1,040

Interest expense A/c Dr $1,040 ($4,160 × 3 months ÷ 12 months)

To Discount on notes payable A/c $1,040

(Being the interest expense is recorded)

c. Now the total net liability is

i. For the interest-bearing note

= Note payable + interest payable

= $52,000 + $1,040

= $53,040

ii. For zero-interest-bearing note

= $56,400 - $3,120 ($4,160 - 1,040)

= $53,280

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Answer:

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Flexible Budget Performance Report:

Flexible Budget Actual Results Variances

Sales (in units) 4,900 4,900

Sales (in dollars) $392,000 $431,200 $39,200 F

Total expenses:

Variable expenses 245,000 276,000 31,200 U

Fixed expenses 140,000 130,000 10,000 F

Total expenses 385,000 406,000 21,200 U

Income from operations $7,000 $25,200 $18,200 U

Explanation:

a) Data and Calculations:

Variable expenses = $300,000

Fixed expenses = $140,000

Budgeted total expenses = $440,000

Actual expenses:

Fixed expenses = $130,000

Fixed Budget Actual Results Variances

Sales (in units) 6,000 4,900

Sales (in dollars) $480,000 $431,200 $48,800 U

Total expenses 440,000 406,000 34,000 F

Income from operations $40,000 $25,200 $14,800 U

Flexing the budgets:

Sales revenue = $392,000 ($480,000/6,000 * 4,900)

Variable expenses = $245,000 ($300,000/6,000 * $4,900)

Actual variable expenses = $276,000 ($406,000 - $130,000)

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Please select the word from the list that best fits the definition

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Explanation:

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Compute the Cost of Goods Manufactured and Cost of Goods Sold for Strike Marine Company for the most recent year using the amoun

Alecsey [184]

Answer:

Instructions are below.

Explanation:

First, we need to calculate the direct material used and the manufacturing overhead:

Direct material used= beginning inventory + purchases - ending inventory

Direct material used= 22,000 + 74,000 - 34,000

Direct material used= $62,000

Manufacturing overhead:

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Repairs and maintenance-plant 3,900

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Total overhead= $68,000

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cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

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cost of goods manufactured= 232,000

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COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

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