Book Balance : $2,490 Bank Balance: $3,360
Add: Add:
Ryan Saar payment 680 Deposits in Transit 300
Interest Revenue 10
Less: Less:
Service Charge ($20) Outstanding Checks (500)
=========== ==========
Cash Balance $3,160 Bank Balance $3,160
*The payment made by Ryan Saar was directly deposited to the bank; therefor, it is not yet recorded in the company books. The same with the Interest Revenue Earned and Service Charge Fees.
*The Deposits in Transit and Outstanding Checks are not yet recorded in the bank because the deposits are still in transit while the outstanding checks are not yet cashed; however, these items were already recorded in the company books.
Answer:
the actual hours were 229,866
Explanation:
the predetermined overhead rate will be the quotient between the expected overhead and the expected value of the cost driver.
880,600 / 200,000 = 4.403
If we allocated 1,012,100
then actual hours x 4.403 = 1,012,100
actual hours = 1,012,100 / 4.403 = 229.866,000
the actual hours were 229,866
Answer:
a. $12,700
b. $2,700
Explanation:
The $10,000 she began with is an asset to the company and is also the owners equity.
Equipment purchased reduces cash but gives rise to another asset (fixed assets) hence the assets value does not change. Supplies is purchased on account, resulting in the creation of an asset and a liability.
Hence total asset owned by Shane Catering
= $10,000 + $2,700
= $12,700
Total liabilities = $2,700
Answer:
d. Work in Process Dr. XXX
Manufacturing Overheads XXX
Explanation:
Work in process inventory is a current asset. A debit of current asset accounts increase their balance while a credit reduces it.
Manufacturing overheads refer to indirect costs. Examples would include such as gas electricity used in manufacturing process which represents an indirect cost.
In the given case, the journal entry would be:
Work in Process A/C Dr.
To Manufacturing Overheads
(Being application of manufacturing overheads recorded)
The entry means manufacturing costs i.e indirect costs have been used, transferred and added to cost of work in process.