Mocha Company manufactures a single product by a continuous process, involving three production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $55,000, $65,000, and $80,000, respectively. In addition, work in process at the beginning of the period for Department 1 totaled $75,000, and work in process at the end of the period totaled $60,000.
The journal entry to record the flow of costs into Department 2 during the period for direct materials is:________.
A. Work in Process--Department 2 55,000
Materials 55,000
B. Work in Process--Department 2 150,000
Materials 150,000
C. Materials 55,000
Work in Process--Department 2 55,000

D. Work in Process--Department 2 100,000
Materials 100,000

Answers

Answer 1

Answer:

A. Work in Process--Department 2 55,000

Explanation:

The journal entry is shown below:

Work in Process - Department 2 Dr $55,000

         To Materials $55,000

(Being the recording of the flow of cost for the direct material is done)

Here the work in process would be debited as it increased the asset and credited the material as it decreased the asset

Therefore the first option is correct


Related Questions

The following data relate to the Torrence Company for May and August:

May August
Maintenance hours 25000 29,000
Maintenance cost $1175,000 $1247,000

May and August were the lowest and highest activity levels, and Torrence uses the high-low method to analyze cost behavior. If maintenance hours are estimated to be 26,000 hours in October, which of the following statements is true?

a. The variable maintenance cost is $24 per hour.
b. The fixed maintenance cost is $72,000 per month.
c. More than one of the other answers is true.
d. The variable maintenance cost is $22 per hour.
e. The variable maintenance cost is $18 per hour.

Answers

The following data relate to the Torrence Company for May and August:

May August
Maintenance hours 25000 29,000
Maintenance cost $1175,000 $1247,000

May and August were the lowest and highest activity levels, and Torrence uses the high-low method to analyze cost behavior. If maintenance hours are estimated to be 26,000 hours in October, which of the following statements is true?

a. The variable maintenance cost is $24 per hour.
b. The fixed maintenance cost is $72,000 per month.
c. More than one of the other answers is true.
d. The variable maintenance cost is $22 per hour.
e. The variable maintenance cost is $18 per hour.

The answer is A I think

Answer:

Variable cost per unit= $18 per unit

Explanation:

First, we need to calculate the unitary and fixed costs under the high-low method:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (1,247,000 - 1,175,000) / (29,000 - 25,000)

Variable cost per unit= $18 per unit

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 1,247,000 - (18*29,000)

Fixed costs= $725,000

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 1,175,000 - (18*24,000)

Fixed costs= $725,000

Total cost= 725,000 + 18*x

x= number of hours

For 26,000:

Total cost= 725,000 + 18*26,000

Total cost= $1,193,000

Transactions for the Bridgeport Company, which provides welding services, for the month of June are presented as follows.

June 1 Bridgeport invests $4,180 cash in exchange for shares of common stock in a small welding business.
2 Purchases equipment on account for $1,070.
3 $740 cash is paid to landlord for June rent.
12 Bills P. Leonard $370 after completing welding work done on account.

Required:
Journalize the transactions.

Answers

Answer:

Explanation: see attached

a) Calculate the PV of a perpetuity with a cash flow of $111,111 received every year. The first cash flow occurs in year 1. The interest rate is 11% simple annual rate. b) Calculate the PV of a perpetuity with a cash flow of $222,222 received every second year. The first cash flow occurs in year 2. The interest rate is 11% simple annual rate. c) Calculate the PV of a perpetuity with a cash flow of $333,333 received every third year. The first cash flow occurs in year 3. The interest rate is 11% simple annual rate.

Answers

Answer:

a) Calculate the PV of a perpetuity with a cash flow of $111,111 received every year. The first cash flow occurs in year 1. The interest rate is 11% simple annual rate.

PV of a perpetuity = annual payment / interest rate = $111,111 / 11% = $1,010,100

b) Calculate the PV of a perpetuity with a cash flow of $222,222 received every second year. The first cash flow occurs in year 2. The interest rate is 11% simple annual rate.

PV of a perpetuity = annual payment / interest rate = $222,222 / (11% x 2) = $1,010,100

c) Calculate the PV of a perpetuity with a cash flow of $333,333 received every third year. The first cash flow occurs in year 3. The interest rate is 11% simple annual rate.

PV of a perpetuity = annual payment / interest rate = $333,333 / (11% x 3) = $1,010,100

Explanation:

Since the interest rate is simple, not compounded, the three perpetuities have the same present value.

Mohawk Machining, which uses a process-costing system, adds material at the beginning of production and incurs conversion cost evenly throughout manufacturing. The following selected information was taken from the company's accounting records: Total equivalent units of materials: 8,000 Total equivalent units of conversion: 7,400 Units started and completed during the period: 6,500 On the basis of this information, the ending work-in-process inventory's stage of completion is:_____.
A- 80%.
B- 70%.
C- 60%. - 40%.
D- some other percentage not listed above.

Answers

Answer:

C. 60%

Explanation:

Equivalent unit of Materials = 8,000.00      

Equivalent unit of Conversion = 7,400.00      

Units started and completed = 6,500.00

Since Materials are entered in the beginning it means that out of 8000 Units of Materials 6500 units are in Units started and completed and remaining 1500 Units are in Closing inventory. It also means that 1500 units are in Closing Inventory of Conversion and Equivalent production of conversion part of 1500 Units are 900 Units (7400-6500).

Let % Completion be x      

X% of 1500 = 900      

X = 900*100/1500      

X = 60%.

Problem 8-12 (Algo) A firm uses a serial assembly system and needs answers to the following: a. An output of 800 units per shift (8.00 hours) is desired for a new processing system. The system requires product to pass through four stations where the work content at each station is 32 seconds. What is the required cycle time for such a system

Answers

Answer:

the required time is 36 seconds

Explanation:

The computation of the required time is given below:

= Production time available ÷ desired output

= (8 hours × 60 minutes × 60 seconds) ÷ 800 units

= 28,800 ÷ 800

= 36 seconds

hence, the required time is 36 seconds

An entrepreneur recently purchased Cocoon's, a local deli, on the beach. To operate the business, she estimates that selling and administrative expenses will be $98,510.00 per year and that depreciation will be $20,000.00 per year. As part of her purchase, she took out a bank loan that will require $76,265.00 per year in interest. She anticipates paying a 32.00% tax rate on income. She estimates that the deli will attract 200.00 customers per day. Each customer will spend $12.00 on average. The cost of goods per customer will be $4.50. She will operate the deli 350.00 days per year. What is the projected net profit margin for the deli

Answers

Answer:

27%

Explanation:

The computation of the net profit margin is shown below;

As we know that

net profit margin = Net profit ÷ sales

where

net profit is

Particulars                                                                 Amount

Sales (200 customers × $12 × 350 days) $840,000

Less: cost of goods sold (200 customers × $4.50 × 350 days) -$315,000

Gross profit $525,000

Less:

Selling and admin expense -$98,510

Depreciation expense - $20,000

Bank loan interest -$76,265

Net income before tax $330,225

Less tax at 32% -$105,672

Net income after tax $224,553

Now the net profit margin is

= $224,553 ÷ $840,000

= 27%

Under IAS 12, current and deferred taxes are measured on the basis of: rates prevailing when the entity provided goods or services. rates that have been enacted or substantively enacted by the balance sheet date. rates anticipated when temporary differences reverse. current rates and rates anticipated when temporary differences reverse.

Answers

Answer:

Under IAS 12, current and deferred taxes are measured on the basis of:

rates anticipated when temporary differences reverse.

Explanation:

According to IAS 12, the measurement of the deferred tax assets and deferred tax liabilities are based on the expected tax rate when the underlying asset or liability is recovered or settled.  Deferred taxes arise from the temporary or timing differences between the carrying amount of an asset or liability in the financial statement and the tax base.

The doctrine of state decisis is a

Answers

It’s a doctrine where the court follows makes decisions based on older decisions in a case with the same or similar scenarios

Robbie is a 20 year old dependent who is a full time student. Robbie has $6,800 in income from wages and $6,000 of interest income from bonds inherited from his grandmother. What is the amount of Robbie's Taxable Income

Answers

Answer:

$5,650

Explanation:

Calculation for What is the amount of Robbie's Taxable Income

Wages $6,800

Add Interest Income $6,000

= Adjusted Gross Income $12,800

($6,800+$6,000)

Less Standard Deduction ($7,150)

Taxable Income $5,650

($12,800-$7,150)

Therefore the amount of Robbie's Taxable Income is $5,650

in one paragraph describe the general advantages and drawbacks of the premium pricing strategy.For exapmle, explain where it falls on the intersection of quality and price.

Please dont copy paste from the internet, will be flagged.

Answers

Answer:

The main advantage resulting from a premium pricing strategy is the higher profits. Another advantage is that customers that purchase premium products seek higher quality and tend to show higher brand loyalty associated with the status of using premium products. The disadvantages of premium pricing are that it cannot be applied to all products, the marketing efforts tend to be more specific, and therefore, represent a higher percentage of sales, and finally, not everyone is willing to pay premium prices.

Indiana Co. began a construction project in 2018 with a contract price of $160 million to be received when the project is completed in 2020. During 2018, Indiana incurred $39 million of costs and estimates an additional $83 million of costs to complete the project. Indiana recognizes revenue over time and for this project recognizes revenue over time according to the percentage of the project that has been completed.
A. Recognized no gross profit or loss on the project in 2018.
B. Recognized $12.37 million gross profit on the project in 2018.
C. Recognized $78.00 million loss on the project in 2018.
D. Recognized $39.00 million loss on the project in 2018.

Answers

Answer:

Recognized $12.47 million gross profit on the project in 2018.

Explanation:

Total Contract price                                                   $160

Total cost incurred during the year 2018    $39  

Additional cost                                               $83

Total cost                                                                     $122

Total profit                                                                    $38

% cost during the year = (39/122*100) = 31.9672131147541% = 31.97%

Revenue recognized on 2018 = 39*31.97% = $12.4683 = $12.47

Which situation is most likely to result in a government having a budget
surplus for a year?

Please help !!!!

Answers

Answer:tylko odpowiedź D

Explanation:

Compute the taxable income for 2020 for Aiden on the basis of the following information. Aiden is married but has not seen or heard from his wife since 2018.

Salary $80,000
Interest on bonds issued by City of Boston 3,000
Interest on CD issued by Wells Fargo Bank 2,000
Cash dividend received on Chevron common stock 2,200
Life insurance proceeds paid upon death of aunt
(Aiden was the designated beneficiary of the policy) 200,000
Inheritance received upon death of aunt 100,000
Jackson (a cousin) repaid a loan Aiden made to
him in 2014 (no interest was provided for) 5,000
Itemized deductions (state income tax,
property taxes on residence, interest
on home mortgage, and charitable contributions) 9,700
Number of dependents
(children, ages 17 and 18, and mother-in-law, age 70) 3
Age 43

Required:
a. Indicate whether the items are taxable or not taxable to Aiden.
b.What is Aiden's filing status?
c. Should Aiden itemize his deductions or take the standard deduction?
d. Aiden's taxable income in 2018 is $________

Answers

Solution :

a). The following items are :

Salary    ---- taxable

Cash dividend that is received on common stock of Chevron  -- Taxable

The Interest on the bonds that is issued by Boston City ---  Not taxable

The proceeds of Life Insurance ---  Not taxable

The interest on the CD that is issued by the Wells Fargo Bank --  Taxable

The Inheritance which is received on the death of Aunt Margie   ---  Not taxable

The Proceeds from repayment of the loan  ----  Not taxable

b). Aiden's filing status is Head of households.

c). Aiden should take the standard deductions.

d). Aiden's taxable income in 2018 :

    Cash dividend that is received on the Chevron common stock   $ 2,200

    Salary                                                                                   $ 80,000

    Interest on the CD issued by the Wells Fargo Bank        $ 2,000

    AGI                                                                                       $ 84,200

    Less : standard deduction                                                  $ 18,000

    Taxable income                                                                  $ 66,200

On January 1, James Company reported total current assets of $658,000 and total current liabilities of $365,000. During the year, James purchased $2,000 worth of equipment for cash, paid $560 towards salaries, and borrowed $80,000 from its bank to be repaid after 5 years. How much working capital does the company have as of December 31

Answers

Answer:

$370,440

Explanation:

The computation of the working capital is as follows:

As we know that

Working capital = Current asset - current liabilities

where,

Current Assets is

= Total current assets - purchase of an equipment - salaries - borrowed amount

= $658,000 - $2,000 - $560 + $80,000

= $735,440  

And, Current Liabilities is $365,000  

So, the working capital is

= $735,440 - $365,000    

= $370,440

The statement of cash flows shows the following information: Cash provided by operating activities of $18,200 Cash used by investing activities of $6,700 Cash used by financing activities of $1,200 The beginning cash was $17,100. What is the amount of cash at the end of the period

Answers

Answer:

$27,400

Explanation:

The amount of cash at the end of the period is calculated as;

Cash provided by operating activities

$18,200

Cash used by investing activities

($6,700)

Cash used by financing activities

($1,200)

Net increase (decrease) in cash balance

(a) $10,300

Cash at the beginning of the year

(b) $17,100

Cash at the end of the year

c = (a) + (b) = $27,400

Outline the process the raw ingredients for a single flavor of ice cream might undergo to get to a local grocery’s freezer case.

Answers

Answer: fermenting , shredding , pasteurizing

5 points eBookPrintItem 3 At the end of last year, the company's assets totaled $870,000 and its liabilities totaled $745,000. During the current year, the company's total assets increased by $59,000 and its total liabilities increased by $24,500. At the end of the current year, stockholders' equity was:

Answers

Answer:

$159,500

Explanation:

The computation of the ending stockholder equity at the current year is given below:

As we know that

Total assets = Total liabilities + stockholder equity

Now both are increased by some amount, so the ending stockholder equity at the current year is

= ($870,000 + $59,000) - ($745,000 + $24,500)

= ($929,000) - ($769,500)

= $159,500

The CEO of a national restaurant chain wants to create a new and improved performance appraisal system. She meets with the vice president of HR to ask her to design the new system. How can the vice president of HR use job analysis in this situation

Answers

Answer:

It can be used to identify the appropriate criteria for evaluating employee job performance.

It can be used to design the format and rating format for a performance appraisal.

Explanation:

Since in the question it is mentioned that she meets with the vice present in order to design the new system so here the vice present could do the job analysis as follows;

1. There should be appropriate criteria for analysing and evaluating the job performance of the employees

2. Also the format should be designed and the rating format for the performance appraisal

These two things should be considered

Batch Co. employs knowledge workers and is finding that its employees are retiring closer to age 75 than to age 65. As a result, they recently amended their defined benefit pension plan such that benefits will begin at age 72, with certain exceptions for those employees demonstrating an earlier need, instead of at age 60. Batch Co. has been able to measure the actuarial present value of this amendment, which is the change in the projected benefit obligation (PBO) that results from the change. How will this affect pension expense in current and future periods?

Answers

Answer:

It will decrease prior service cost and, as prior service cost is amortized, will decrease pension expense.

Explanation:

In the given if there is any change in the projected benefit obligation so the pension expense would impact in the present and future period by reducing the service cost that incurred before also the service cost that incurred before would be amortized that ultimately reduce the pension expense

Therefore the first option is correct

How do state and federal courts differ in the United States?

Answers

Answer:The primary distinction is that state and local courts are authorized to hear cases involving the laws and citizens of their state or city, while federal courts decide lawsuits between citizens of different states, cases against the United States, and cases involving specific federal laws.

Explanation:

Sweet Shop Co. is a chain of candy stores that has been in operation for the past ten years. For each of the following transactions give the accounting effects of the adjustments required. (Enter any decreases to account balances with a minus sign.)
a. Ordered and received $12,300 worth of cotton candy machines from Candy Makers Inc., which Sweet Shop Co. will pay for in 45 days.
b. Sent a check for $6,300 to Candy Makers Inc. for the cotton candy machines from (a).
c. Received $700 from customers who bought candy on account in previous months.
d. To help raise funds for store upgrades estimated to cost $36,500, Sweet Shop Co. issued 1,300 common shares for $25 each to existing stockholders.
e. Sweet Shop Co. bought ice cream trucks for $66,000 total, paying $13,000 cash and signing a long-term note for $53,000.

Answers

Answer:

Sweet Shop Co.

Accounting Effects of Transactions:

a. Ordered and received $12,300 worth of cotton candy machines from Candy Makers Inc., which Sweet Shop Co. will pay for in 45 days.

Assets (Equipment +$12,300) = Liabilities (Accounts Payable +$12,300) + Equity

b. Sent a check for $6,300 to Candy Makers Inc. for the cotton candy machines from (a).

Assets (Cash -$6,300) = Liabilities (Accounts payable -$6,300) + Equity

c. Received $700 from customers who bought candy on account in previous months.

Assets (Cash +$700) = Liabilities + Equity (Retained Earnings +$700)

d. To help raise funds for store upgrades estimated to cost $36,500, Sweet Shop Co. issued 1,300 common shares for $25 each to existing stockholders.

Assets (Cash +$32,500) = Liabilities + Equity (Common stock +$32,500)

e. Sweet Shop Co. bought ice cream trucks for $66,000 total, paying $13,000 cash and signing a long-term note for $53,000.

Assets (Trucks +$66,000; Cash -$13,000) = Liabilities (Long-term note payable +$53,000) + Equity

Explanation:

The accounting effects of transactions show how the accounting equation will always remain in balance given each transaction's double-entry effects.

The bank has a 10% reserve requirement. Record each transaction in the category it belongs in. Carry forward the information from the previous transaction. The categories you will use are those included below.
Eli has $5,000 in cash and decides that he needs to open a checking account at Main Street Bank.
Assets Liabilities
Required Reserves - 500
Excess Reserves -
Loans - 4500 Checkable Deposits - 5000

Answers

Answer:

ASSETS

Required Reserves $500

Excess Reserves $5,000

Loans $5,000

LIABILITIES

Checkable Deposits $4,500

Explanation:

Based on the information given in a situation where Eli has the amount of $5,000 in cash in which he decided that he will needs to open a checking account which means that the category to Record this transaction will be:

ASSETS

Required Reserves $500

(10% reserve requirement *$5,000 Cash)

Excess Reserves $5,000

Loans $5,000

LIABILITIES

Checkable Deposits $4,500

[$5,000-(10% reserve requirement *$5,000 Cash)]

($5,000-$500)

=$4,500

A Student table and an Address table contain one linked record. What kind of table relationship do these tables
demonstrate?
a. one-to-one
b. one-to-many
c. many-to-many
d. many-to-none

Answers

A.

I not sure though

Answer:

A.)

Explanation:

hope this helps

The Commonwealth of Virginia filed suit in October 2019 against Northern Timber Corporation, seeking civil penalties and injunctive relief for violations of environmental laws regulating forest conservation. When the 2020 financial statements were issued in 2021, Northern had not reached a settlement with state authorities, but legal counsel advised Northern Timber that it was probable the ultimate settlement would be $1,056,000 in penalties. The following entry was recorded:
Loss-litigation 1,650,000
Liability-litigation 1,650,000
Late in 2016, a settlement was reached with state authorities to pay a total of $1,120,000 to cover the cost of violations.
Required:
1. Prepare any journal entries related to the change.
2. Would a disclosure note be required for the change in estimate?

Answers

Answer:

Dr Liability - Litigation 530,000

Cr Gain - Litigation 530,000

Explanation:

Preparation of any journal entries related to the change.

Based on the information given journal entries related to the change will be:

Dr Liability - Litigation 530,000

Cr Gain - Litigation 530,000

(1,650,000-$1,120,000)

During January, Year 2, Geo entered into the following transactions: Paid $728 on account for utilities that were used during December, Year 1. Purchased $488 of supplies for cash. Signed a rental agreement for office space and paid $6,100 in advance for six months of rent beginning February 1, Year 2. Purchased $21,000 of new equipment, signing a promissory note. Provided $32,500 of services. $16,000 was received in cash and $16,500 was provided on credit. Paid workers $7,400 for work done in January. Required: Prepare journal entries for each of the following January activities, and post results to the relevant T-accounts. Compute the ending balance of each T-account. Beginning balances have been entered.

Answers

Answer:

Geo

1. Journal Entries:

1. Debit Utilities Payable $728

Credit Cash $728

To record the payment of utilities on account.

2. Debit Supplies $488

Credit Cash $488

To record the purchase of supplies for cash.

3. Debit Prepaid Rent $6,100

Credit Cash $6,100

To record the prepayment of rent for 6 six months.

4. Debit Equipment $21,000

Credit Note Payable $21,000

To record the purchase of equipment on account.

5. Debit Cash $16,000

Debit Accounts Receivable $16,500

Credit Services Revenue $32,500

To record the rendering of services for cash and on account.

6. Debit Salaries Expense $7,400

Credit Cash $7,400

To record the payment of salaries for January.

2. T-accounts:

Utilities Payable

Accounts Titles       Debit        Credit

Cash                        $728

Cash

Accounts Titles       Debit        Credit

Utilities payable                       $728

Supplies                                     488

Prepaid Rent                           6,100

Service Revenue  $16,000

Salaries Expense                   7,400

Supplies

Accounts Titles       Debit        Credit

Cash                       $488

Prepaid Rent

Accounts Titles       Debit        Credit

Cash                    $6,100

Equipment

Accounts Titles       Debit        Credit

Note Payable        $21,000

Note Payable

Accounts Titles       Debit        Credit

Equipment                             $21,000

Accounts Receivable

Accounts Titles       Debit        Credit

Service Revenue $16,500

Services Revenue

Accounts Titles            Debit        Credit

Cash                          $16,000

Accounts Receivable 16,500

Salaries Expense

Accounts Titles       Debit        Credit

Cash                      $7,400

Explanation:

Since the beginning balances were not supplied, the T-accounts are not balanced at the end of the period.  Journal entries were prepared to record the daily business transactions for the first time in the accounting system.  The entries showed the accounts to be debited and credited respectively.

International businesses need to understand the nature of the globalization debate and observe how their own practices may act in support of, or against globalization.

a. True
b. False

Answers

International businesses need to understand the nature of the globalization debate and observe how their own practices may act in support of, or against globalization.

a. True
b. False

It’s false I hope

Answer:

true

Explanation:

PCM Thermal Products uses austenitic nickel-chromium alloys to manufacture resistance heating wire. The company is considering a new annealing-drawing process to reduce costs. If the new process will cost $3.25 million dollars now, how much must be saved each year to recover the investment in 6 years at an interest rate of 15% per year

Answers

Answer:

the amount that need to be saved each year in order to recover the investment is $858,770

Explanation:

The computation of the amount saved each year is shown below:

= Costing of the new process × (A/P, 15%, 6)

= $3,250,000 × 0.26424

= $858,770

hence, the amount that need to be saved each year in order to recover the investment is $858,770

Ketchup is a complement (as well as a condiment) for hot dogs. If the price of hot dogs rises, the quantity of hot dogs demanded ____________, which _________ the demand for ketchup. Because of the change in the equilibrium quantity of ketchup, the demand for tomatoes by ketchup producers ___________, causing the equilibrium price of tomatoes to___________. This means producers of tomato juice face__________ input prices, and the supply curve for tomato juice ____________). The resulting ____________ in the price of tomato juice causes people to substitute (away from tomato juice and toward orange juice/away from orange juice and toward tomato juice), so the demand for orange juice ________.

Answers

Answer:

Falls; lowers; falls; decrease; lower; increases; fall; away from orange juice and toward; fall.

Explanation:

In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.

The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal. On the other hand, law of supply states that the higher the price of goods and services, the lower the supply.

Generally, consumers would like to be buy a product as its price falls or become inexpensive.

For substitute or complement products (goods), the price elasticity of demand is always positive because the demand of a product increases when the price of its close substitute (alternative) increases.

In this scenario, Ketchup is a complement (as well as a condiment) for hot dogs. If the price of hot dogs rises, the quantity of hot dogs demanded falls, which lowers the demand for ketchup. Because of the change in the equilibrium quantity of ketchup, the demand for tomatoes by ketchup producers falls, causing the equilibrium price of tomatoes to decrease. This means producers of tomato juice face lower input prices, and the supply curve for tomato juice increases. The resulting fall in the price of tomato juice causes people to substitute away from orange juice and toward tomato juice, so the demand for orange juice falls.

Yi Min started an engineering firm called Min Engineering. He began
operations and completed seven transactions in May, which included his initial investment of $19,500 cash. After those seven transactions, the ledger included the following accounts with normal balances.
Cash$46,789
Office supplies 940
Prepaid insurance 4,100
Office equipment 13,500
Accounts payable 13,500
Common stock 19,500
Dividends 3,191
Engineering fees earned 43,000
Rent expense 7,480
The following seven transactions produced the account balances shown above.
A. Y. Min invested $19,500 cash in the business in exchange for common stock.
B. Paid $7,480 cash for monthly rent expense for May.
C. Paid $4,100 cash in advance the annual for insurance premium beginning the next period.
D. Purchased office supplies for $940 cash.
E. Purchased $13,500 of office equipment on credit (with accounts payable).
F. Received $43,000 cash for engineering services provided in May.
G. The company paid $3,191 cash in dividends.

Answers

Question Completion:

Prepare a trial balance for the month of May and a Cash T-account, showing the cash balance.

Answer:

Yi Min

1. Trial Balance as of May 31,

Account Details             Debit        Credit

Cash                           $46,789

Office supplies                 940

Prepaid insurance          4,100

Office equipment        13,500

Accounts payable                        $13,500

Common stock                              19,500

Dividends                       3,191

Engineering fees earned            43,000

Rent expense              7,480

Totals                      $76,000    $76,000

2. Cash Accounts

Account Details             Debit        Credit

Common stock          $19,500

Rent                                              $7,480

Prepaid Insurance                          4,100

Office supplies                                 940

Engineering fees       43,000

Dividends                                        3,191

Balance                                     $46,789

Totals                      $62,500   $62,500

Explanation:

a) Data and Calculations:

Cash$46,789

Office supplies 940

Prepaid insurance 4,100

Office equipment 13,500

Accounts payable 13,500

Common stock 19,500

Dividends 3,191

Engineering fees earned 43,000

Rent expense 7,480

b) Yi Min's trial balance lists all the general ledger accounts (both revenue and capital) of a business at the end of May. This list is made up of the Account Titles of each nominal ledger account and the value of that ledger balance as either a debit balance or a credit balance.  The two sides are expected to be in agreement, otherwise, an error in posting could have occurred.

c) The Cash account is the general ledger where all cash transactions are posted and summarized in order to determine the balance at the end of the period.  It records the cash receipts and the cash payments.

Tootsie Roll Industries is engaged in the manufacture and sale of candy. Major products include Tootsie Roll, Tootsie Roll Pops, Tootsie Pop Drops, Tootsie Flavor Rolls, Charms, and Blow-Pop lollipops. The following items were listed on Tootsie Roll's recent income statement and balance sheet. Select each item from the balance sheet as an asset (A), liability (L), or shareholders' equity (SE) item and each item from the income statement as a revenue (R) or expense (E) item.

a. Bank loans
b. Selling, marketing, and administrative expenses
c. Accounts payable
d. Dividends payable
e. Retained earnings
f. Cash and cash equivalents
g. Accounts receivable
h. Provision for income taxes
i. Product cost of goods sold
j. Machinery and equipment
k. Net product sales
l. Inventories
m. Trademarks
n. Buildings
o. Land
p. Income taxes payable
q. Rental and royalty costs
r. Investments (in other companies)

Answers

Answer:

Balance Sheet

a. Bank loans ( L )

c. Accounts payable ( L )

d. Dividends payable ( L )

e. Retained earnings ( SE )

f. Cash and cash equivalents ( A )

g. Accounts receivable ( A)

h. Provision for income taxes ( L )

j. Machinery and equipment ( A )

l. Inventories ( A )

m. Trademarks ( A )

n. Buildings ( A )

o. Land ( A )

p. Income taxes payable ( L )

r. Investments (in other companies) ( A )

Income Statement

b. Selling, marketing, and administrative expenses ( E )

i. Product cost of goods sold ( E )

k. Net product sales ( R )

q. Rental and royalty costs ( E )

Explanation:

All the Assets, Liabilities, and Shareholder's equity are part of the balance sheet so, these are classified under the Balance sheet as A, L, and SE respectively.

Revenue and Expesne are incorporated in the income statement to calculate the net income for the period. Both of these are classified under the income statement as R and E respectively.

All those items over which the business has control and the right to receive an economic benefit from it are defined as assets. e.g Land

All the item which represents the obligation for the business to be fulfilled in future is classified as liabilities. e.g Bank loan

All the items associated with the shareholders of the company are classified as shareholder's equity. e.g Retained Earnings.

All the items which show the income for the flow of the economic benefit for the business are considered as Revenue. e.g Net sales.

All the items show the costs incurred to receive the benefit for the business are classified as the expense. e.g Rental expenses

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