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3 years ago

During 2022, its first year of operations as a delivery service, Indigo Corporation entered into the following transactions.

Business

1 answer:

irina [24]3 years ago

5 0

Answer:

Indigo Corporation

Assets = Liabilities + Stockholders' Equity

1. Cash $150,000

Common Stock $150,000

2. Cash $40,000

Bonds Payable $40,000

3. Delivery trucks $55,000

Cash ($55,000)

4. Cash $17,000

Accounts Receivable ($17,000)

5. Supplies $6,700

Accounts Payable $6,700

6. Cash ($4,200) ($4,200) Rent expense

7. Accounts Receivable 11,700 $11,700 Service revenue

8. Cash ($26,800) ($26,800) Salaries exp.

9. Cash ($11,200) ($11,200) Dividends

Assets $166,200 = $46,700 + $119,500

Explanation:

a) Data and Analysis (Accounting Equation Effect):

1. Cash $150,000 Common Stock $150,000

2. Cash $40,000 Bonds Payable $40,000

3. Delivery trucks $55,000 Cash $55,000

4. Cash $17,000 Accounts Receivable $17,000

5. Supplies $6,700 Accounts Payable $6,700

6. Cash ($4,200) Rent Expense ($4,200)

7. Accounts Receivable $11,700 Service Revenue $11,700

8. Cash ($26,800) Salaries ($26,800)

9. Cash ($11,200) Dividends ($11,200)

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here the cash is debited as it increased the assets and credited the sales revenue and deferred revenue as it increased the revenue and liabilities

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Resource Room prints custom training material for corporations. The business was started January 1, 2017. The company uses a nor

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Answer:

Budgeted Overhead Cost 266,000

Budgeted Labor Cost 190,000

Recovery rate =266000/190000

Recovery rate per labor cost 1.40

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WIP closing Material Labor

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Job 12 5,090 6,900

Total 9,810 12,600

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@ 140% of labor

Balance before 537,950 40,050 578,000

adjustment to overhead

under-allocation

Option 1-Underallocated 2,200 2,200

overhead (247200-245000)

Balance after adjusting 540,150 40,050 580,200

overhead under-allocation

Option 2-Underallocated 2,042 158 2,200

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2200*227360/245000

2200*17640/245000

Balance before adjustment 537,950 40,050 578,000

to overhead under-allocation

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Budgeted Overhead Cost 266,000

Budgeted Labor Cost 190,000

Recovery rate =266000/190000

Recovery rate per labor cost 1.40

Actual Material 158,000

Actual labor 175,000

WIP closing Material Labor

Job 11 4,720 5,700

Job 12 5,090 6,900

Total 9,810 12,600

Transfer to Finished= Total-WIP

Actual Material 148,190

Actual labor 162,400

Category Finished WIP Total

Material 148,190 9,810 158,000

Labor 162,400 12,600 175,000

Overhead-Recovered 227,360 17,640 245,000

@ 140% of labor

Balance before 537,950 40,050 578,000

adjustment to overhead

under-allocation

Option 1-Underallocated 2,200 2,200

overhead (247200-245000)

Balance after adjusting 540,150 40,050 580,200

overhead under-allocation

Option 2-Underallocated 2,042 158 2,200

overhead in overhead allocated rate

2200*227360/245000

2200*17640/245000

Balance before adjustment 537,950 40,050 578,000

to overhead under-allocation

Balance after adjusting 539,992 40,208 580,200

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Answer and Explanation:

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