Assuming the required-reserve ratio is 20%, after a $5 billion purchase of securities (government bonds) from the non-bank publi
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Answer:
overhead rate $4 per machien hour
applied overhead 1,560,000
The overhead was underapplied for 15,000
entry to adjust against COGS
Cost of Goods of sold 15,000 debit
Factory overhead 15,000 credit
Explanation:
we divide the expected overhead over the total amount of budgeted machine hours to determinate the overhead rate:
1,600,000 / 400,000 = $4 per machine hours
Actual machine hours 390,0000
applied overhead:
actual cost driver x rate per driver
390,000 x $4 = 1,560.000 applied overhead
Actual overhead 1,575,000
As aplies is lower, we should adjust for 15,000 difference
Answer:
General Journal entry:
Account Debit Credit
Amortization expense $6,750
Accumulated Amortization $6,750
(patent)
Explanation:
Given Data:
Price of patent=$38,500
Legal fees=$2,000
legal Life=13 years
useful life=6 years
Required:
Journal Entry
Solution:
Amortization:
For intangible assets, amortization is the decrease in book value over the period of time. However intangible assets have no physical appearance and they do not face any damage like fixed assets but with the passage of time their value decrease.
Calculating amortization expense for one year:
Amortization expense=
General Journal entry:
Account Debit Credit
Amortization expense $6,750
Accumulated Amortization $6,750
(patent)