Answer:
March 1 Issue common stock for $21,000.
- Dr Cash 21,000
- Cr Common stock 21,000
March 5 Obtain $9,000 loan from the bank by signing a note.
- Dr Cash 9,000
- Cr Notes payable 9,000
March 10 Purchase construction equipment for $25,000 cash.
- Dr Equipment 25,000
- Cr Cash 25,000
March 15 Purchase advertising for the current month for $1,100 cash.
- Dr Advertising expense 1,100
- Cr Cash 1,100
March 22 Provide construction services for $18,000 on account.
- Dr Accounts receivable 18,000
- Cr Service revenue 18,000
March 27 Receive $13,000 cash on account from March 22 services.
- Dr Cash 13,000
- Cr Accounts receivable 13,000
March 28 Pay salaries for the current month of $6,000.
- Dr Salaries expense 6,000
- Cr Cash 6,000
You would divide by the total units produced
Answer:
The firm must increase the value of the equipment account by $2,500.
Explanation:
In this case, the repair expense must capitalize the asset account and not be considered an expense, instead it should be considered an additional investment. The $2,500 should be depreciated along with the normal depreciation of the equipment since it increased the productive capacity significantly.
Answer:
less than the units started during the period
Explanation:
The computation of the number of equivalent units of conversion cost would be
units completed during the year 100%
ending work in process 70%
As it can be seen that it is lower than the units that started during the period
Therefore the correct option is c
Hence, all the other options are incorrect
Answer:
1- Cash (Dr.) $ 47,000
Computer (Dr.) $ 40,000
Common Stock (Cr.) $ 87,000
2- Rent Expense (Dr.) $2,200
Cash (Cr.) $2,200
3- Office Supplies (Dr.) $2,000
Cash (Cr.) $2,000
10- Prepaid Insurance (Dr.) $2,200
Cash (Cr.) $2,200
14- Salaries Payable (Dr.) $14,000
Cash (Cr.) $14,000
24- Cash (Dr.) $14,000
Commission from Airline (Cr.) $14,000
28- Salaries Payable (Dr.) $1,300
Cash (Cr.) $1,300
29- Computer Repair Expense (Dr.) $300
Cash (Cr.) $300
30- Telephone Bill Expense (Dr.) $1,100
Cash (Cr.) $1,100
30- Dividend Payable (Dr.) $2,000
Cash (Cr.) $2,000
Explanation:
The company has incurred business transactions which are recorded in the system as journal entries. These entries are then posted to create ledgers which shows the summarize form of all the transactions. These ledger then create trial balance which displays complete account balances of all the transactions separately.
