ACT 6692 Mod 09 Assignment Answers

ACT 6692 Mod 09 Assignment Answers - ACT 6692 Name Module 9...

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ACT 6692 Name Module 9 – Assignment (Simulation) Situation Tab Kestle Corp. engaged in the following transactions during 2007: o In 2007, Kestle made an installment sale to Linton Corp. for $500,000. The gross profit on the sale was 30%. However, the collectibility of the sale is not reasonably assured. In 2007, Kestle collected $200,000 on the sale. The company hopes to collect the remaining balance over the next two years. o Kestle paid $7,200 for a 24-month insurance policy on September 1, 2007. The entry was recorded in a balance sheet account. o Kestle has 300 employees in its production facility. The employees work Monday through Friday, eight hours per day, and are paid biweekly. Each employee earns $12 per hour. December 31 is on a Friday, but the employees' biweekly pay date ends on Friday, January 7, 2008. o On April 1, 2007, Kestle borrowed $40,000 by signing a 3-year interest-bearing note. The interest rate was 6%. Both the interest and the note are due at maturity. Concepts Tab For items 1 through 5 select the source of accounting principles that has the higher level of authority under generally accepted accounting principles. 1 . AcSEC Practice Bulletins AICPA Accounting Research Bulletins x 2 . FASB Technical Bulletins x Q & A's published by FASB Staff 3 . AICPA Industry Audit and Accounting Guides x AcSec Practice Bulletins 4 . FASB Statements x AICPA Statements of Position 5 . FASB Emerging Issues Task Force Positions APB Opinions x For grading purposes you should indicate your selection by marking the buttons Journal Entries Tab Complete the following required adjusting journal entries for Kestle Corp. (as of December 31, 2007) 1.
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Insurance expense 1,200 Prepaid insurance 1,200 7200/24*4 2. Wage expense
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ACT 6692 Mod 09 Assignment Answers - ACT 6692 Name Module 9...

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