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Alex73 [517]
3 years ago
15

Larned Corporation recorded the following transactions for the just completed month. $80,000 in raw materials were purchased on

account. $71,000 in raw materials were requisitioned for use in production. Of this amount, $62,000 was for direct materials and the remainder was for indirect materials. Total labor wages of $112,000 were incurred. Of this amount, $101,000 was for direct labor and the remainder was for indirect labor. Additional manufacturing overhead costs of $175,000 were incurred.Prepare journal entries for above transactions.
Business
1 answer:
sesenic [268]3 years ago
5 0

Answer and Explanation:

The Journal entry is shown below:-

a. Raw material Dr, $80,000

                To Account payable $80,000

(Being purchase of raw material is recorded)

Here we debited the raw material as it increased the assets and we credited the accounts payable as  it also increased the liabilities

b. Work in process Dr, $62,000

   Manufacturing overhead Dr $9000

           To Raw material $71,000

(Being raw material used is recorded)

Here we debited the work in progress ,  the manufacturing overhead as it increased the assets and expenses and credited the raw material as  it decreased the assets

c. Work in process Dr, $101,000

   Manufacturing overhead Dr, $11,000

                       To Cash $112,000

(Being paid to labor is recorded)

Here we debited the work in progress ,  the manufacturing overhead as it increased the assets and expenses and credited the cash as  it decreased the assets

d. Manufacturing overhead Dr, $175,000

          To Accumulated depreciation-Equipment $175,000

(Being manufacturing overhead is recorded)

Here we debited the manufacturing overhead as it increased the expenses and we credited the accumulated depreciation of depreciation as it reduced the assets

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Ivanhoe purchased a patent from Vania Co. for $1,240,000 on January 1, 2018. The patent is being amortized over its remaining le
Julli [10]

Answer: $744,000

Explanation:

The amount that should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2020 will be:

First, we have to calculate the amortization recorded up to 2019. This will be:

= (1,240,000 / 10) x 2

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The we calculate the amortization to be recognized in 2020. This will be:

= (1,240,000 – 248,000) / 4

= 248,000

The amount that should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2020 will be:

= 1240000 - 248000 - 248000

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3 years ago
Darcy Roofing is faced with a decision. The company relies very heavily on the use of its 60-foot extension lift for work on lar
Verdich [7]

Answer:

Effect on income= $15,000 favorable

Explanation:

Giving the following information:

It has just determined that another $40,000 of repair work is required. Alternatively, it has found a newer used lift that is for sale for $170,000. The company estimates that both lifts would have useful lives of 6 years. The new lift is more efficient and thus would reduce operating expenses by about $20,000 per year. Darcy Roofing could also rent out the new lift for about $10,000 per year. The old lift is not suitable for rental. The old lift could currently be sold for $25,000 if the new lift is purchased.

Year 0= -170,000 + 25,000 + 40,000= -105,000

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Effect on income= $15,000 favorable

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3 years ago
Explain external economics and external diseconomics​
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Answer:

If the social cost of an activity exceeds the costs relevant to the decision makers in the activity , there is an external diseconomy . If the benefits of an activity exceed its marginal cost , there is an external economy .

Explanation:

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From the dropdown box beside each numbered balance sheet item, select of its balance sheet classification.
Kamila [148]

Answer:

Balance Sheet Classifications:

                               Account Title                             Classification

1. Prepaid Rent       Prepaid Rent                              Current Assets

2. Equipment         Property, Plant, & Equipment    Plant Assets

4. Land                   Land                                            Long-term assets

5. Land                   Land                                            Long-term assets

6. Office Equipment  Property, Plant & Equipment Plant Assets

7. Common Stock  Common Stock                          Equity

8. Buildings                Property, Plant & Equipment Plant Assets

9. Bonds Payable      10-year Bonds Payable          Long-term Liabilities

10. Accumulated Depreciation -Truck                      Contra account to Long-term assets

11. Mortgages Payable  6-year Mortgages             Long-term liabilities

12. Automobiles           Automobiles                       Long-term assets

13. Notes payable        3-year Notes Payable         Long-term liabilities

14. Land                         Land                                    Long-term assets

15. Notes payable       2-month Notes Payable     Current liabilities

16. Notes Receivable  2-year Notes Receivable    Long-term assets

17. Interest Payable    Interest Payable                   Current liabilities

18. Long-term investment in stock                          Long-term investments

19. Wages Payable       Wages Payable                   Current liabilities

20. Office Supplies      Office Supplies                   Current assets

Explanation:

a) Current assets are short-term financial resources owned by the entity from which economic benefits will accrue.  They are mainly used as working capital to generate more revenue.

b) Long-term investments are investments in securities like bonds and stock held by the entity to generate interests and dividends.

c) Plant assets are property, plants, and equipment which are non current assets being used for the long-term in the running of the business, e.g. building.

d) Intangible assets are assets which are not physical in nature.  Examples of intangible assets are patents and copyrights, mining rights, and intellectual property.

e) Current liabilities are financial obligations of the entity which must be settled with financial resources within a calendar year or less.  Examples: Wages Payable, Accounts Payable, and Unearned Revenue.

f) Long-term liabilities are liabilities (financial obligations) which an entity settles with financial resources that can last for more than a calendar year.  Examples included Bonds, Notes, and other payables which are not current.

g) Equity refers to the ownership interest in an entity.  This is what the owners of the business are entitled when other creditors have been settled.  It is made of contributed capital and retained earnings.

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3 years ago
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zubka84 [21]

Answer:

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Explanation:

According to the BCG Matrix, question marks are business units that operate in rapidly growing markets but currently only possess a low market share.

This results in a lot of cash being consumed by the business unit, but also the possibility of high growth. It is called a question mark because it is uncertain if the business unit will be successful or not. This means that they are very risky investments.

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