The journal entry to record direct labor used in

The journal entry to record direct labor used in process costing is a(n):
Correct Answer
increase in assets and an increase in liabilities.
The journal entry to record the accrual of factory utilities is to:
Correct Answer
debit Factory Overhead and credit Utilities Payable
The journal entry to record the transfer of units from Process 1 to the Process 2 in
process costing is:
Correct Answer
debit Work in Process Inventory - 2 and credit Work in Process Inventory - 1
The journal entry to record the insurance on the factory equipment is to:
Correct Answer
debit Factory Overhead and credit Prepaid Insurance
The journal entry to record the transfer of partially completed work in process to the
next process in process costing is a(n):
Correct Answer
decrease in one asset and an increase in another asset
On January 2, Year 1, Cox Company purchased equipment costing $36,100, with an
estimated salvage value of $2,800 and an estimated useful life of 12 years.
On December 31, Year 3, Cox Company scrapped the equipment.
Required:
Prepare the journal entry to record the scrapping of the asset.
Note: Assume that Cox Company uses the straight-line depreciation method and that
depreciation expense has already been recorded for the current year.

Depreciation = (36100 – 2800)*3yrs/12yrs = 8325
36100 – 8325 = 27,775
Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
On September 1, Wood Magazine Company receives annual subscriptions totaling
$783,300. The first issue will be received by the subscriber one month after the money
is received. Wood Magazine Company's fiscal year ends December 31.
Required:
How much revenue would Wood recognize from this amount for the current year?
$783,300 x 3months/12months = $195,825 (Sep 1-Dec 1)= 3 months
Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
On January 2, Year 1, Martin Company purchased equipment costing $36,300, with an
estimated salvage value of $2,200 and an estimated useful life of 11 years.
On December 31, Year 9, Martin Company sold the equipment to Used Machine
Company for $7,822.
Required:
Prepare the journal entry to record the sale of the asset.
Note: Assume that Martin Company uses the straight-line depreciation method and that
depreciation has already been recorded for the current year.

(36300 – 2200)/11*9= 27,900
36300 – 7822 – 27900 = 578
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
On January 2, Year 1, Edwards Company purchased equipment costing $17,700, with an
estimated salvage value of $2,000 and an estimated useful life of 10 years.
On December 31, Year 5, Edwards Company sold the equipment to Used Machine
Company for $9,289.
Required:
Prepare the journal entry to record the sale of the asset.
Note: Assume that Edwards Company uses the straight-line depreciation method and
that depreciation has already been recorded for the current year.