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Eddi Din [679]
2 years ago
11

on july 1, the knit shop paid $9,000 to townsend realty for 6 months’ rent beginning july 1. prepaid rent was debited for the fu

ll amount. if financial statements are prepared on july 31, the adjusting entry is:
Business
1 answer:
lubasha [3.4K]2 years ago
6 0

Answer:

debit Rent Expense, $1,500; credit Prepaid Rent, $1,500.

Explanation:

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Savallas Company is highly automated and uses computers to control manufacturing operations. The company uses a job-order costin
Setler79 [48]

Answer:

Part 1.  Compute the company%u2019s predetermined overhead rate for the year

Predetermined overhead rate  = $15 / Computer Hour

Part 2. Compute the underapplied or overapplied overhead for the year.

Underapplied Overheads are: $1,350,000 -  $900,000 = $450,000

Part 3.  Assume the company closes any underapplied or overapplied overhead directly to cost of goods sold. Prepare the appropriate journal entry.

Cost of goods sold $450,000 (debit)

Overhead Account $450,000 (credit)

Part 4. Company allocates any underapplied or overapplied overhead to work in process, finished goods, and cost of goods sold on the basis of the amount of overhead applied during the year that remains in each account at the end of the year:

Work In Process $18,000 (debit)

Finished Goods $73,008 (debit)

Cost of Goods Sold $315,000 (debit)

Overhead Account $450,000(credit)

Explanation:

Part 1.  Compute the company%u2019s predetermined overhead rate for the year

Predetermined overhead rate = Budgeted Overheads / Budgeted Activity

                                                    = $1,275,000/ 85,000

                                                    = $15 / Computer Hour

Part 2. Compute the underapplied or overapplied overhead for the year.

Applied Overheads = Actual hours × Predetermined overhead rate

                                 = 60,000 × $15

                                 =  $900,000

Actual Overheads = given = $1,350,000

Applied Overheads $900,000 < Actual Overheads $1,350,000, thus we have an underapplied situation

Therefore Underapplied Overheads are: $1,350,000 -  $900,000 = $450,000

Part 3.  Assume the company closes any underapplied or overapplied overhead directly to cost of goods sold. Prepare the appropriate journal entry.

Cost of goods sold $450,000 (debit)

Overhead Account $450,000 (credit)

Part 4. Company allocates any underapplied or overapplied overhead to work in process, finished goods, and cost of goods sold on the basis of the amount of overhead applied during the year that remains in each account at the end of the year:

Allocations:

                                         Totals          Weighted Average%       Allocation

Work In Process              $43,200                   4%                           $18,000

Finished Goods              $280,800               26%                           $73,008

Cost of Goods Sold        $756,000               70%                          $315,000

Total                                $1,080,000            100%                         $450,000

Journals:

Work In Process $18,000 (debit)

Finished Goods $73,008 (debit)

Cost of Goods Sold $315,000 (debit)

Overhead Account $450,000(credit)

5 0
3 years ago
Micro Corp. reported a statutory tax rate of 35% and an effective tax rate of approximately 15%. The current year's income state
Alexxx [7]

Answer:

$19,687 million

Explanation:

Income tax expense = Income before income tax expense*Effective tax rate

Income before income tax expense = Income tax expense / Effective tax rate

Income before income tax expense = $2,953 million / 15%

Income before income tax expense = $2,953 million / 0.15

Income before income tax expense = $19,687 million

So, the amount that Micro report as income before income tax expense that year is $19,687 million.

6 0
2 years ago
When gathering information which of the following task might you need to perform
JulsSmile [24]

Answer:

take notes, research that information

6 0
2 years ago
If all firms expect greater demand for their products or services, they will hire _____ resources like labor and capital and the
nexus9112 [7]

Answer: more, growth

Explanation:

If all firms expect greater demand for their products or services, they will hire more resources like labor and capital and the economy will experience growth.

For an economy to grow, human capital, labor force, and technology can not be exempted. The quality of the materials used also plays a vital role as well. Once all these are in place, then the economy while start experiencing turn around.

6 0
3 years ago
Suppose that the Federal Reserve conducts open market operations by purchasing $1,000 worth of government securities from Bank A
notsponge [240]

Answer:

$100 in bank A

$900 in bank B

Explanation:

Since the required reserve ratio is 10%, then bank A can lend up to 90% of the funds to bank B, and must keep the remaining 10%.

  • bank A = $1,000 x 10% = $100
  • bank B = $1,000 x 90% = $900

If bank B borrowed the money to another client, then they would be able to borrow $900 x 90% = $810, and they should keep $90 as reserves.

5 0
3 years ago
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