Course Hero Logo

The journal entry to record direct labor used in

Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e.g., in search results, to enrich docs, and more. This preview shows page 480 - 483 out of 549 pages.

The journal entry to recorddirectlabor used in process costing is a(n):Correct Answerincrease in assets and an increase in liabilities.The journal entry to record the accrual of factory utilities is to:Correct Answerdebit Factory Overhead and credit Utilities PayableThe journal entry to record the transfer of units from Process 1 to the Process 2 inprocess costing is:Correct Answerdebit Work in Process Inventory - 2 and credit Work in Process Inventory - 1The journal entry to record the insurance on the factory equipment is to:Correct Answerdebit Factory Overhead and credit Prepaid InsuranceThe journal entry to record the transfer of partially completed work in process to thenext process in process costing is a(n):Correct Answerdecrease in one asset and an increase in another assetOn January 2, Year 1, Cox Company purchased equipment costing $36,100, with anestimated 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 thatdepreciation expense has already been recorded for the current year.
Depreciation = (36100 – 2800)*3yrs/12yrs = 832536100 – 8325 = 27,775XxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxOn September 1, Wood Magazine Company receives annual subscriptions totaling$783,300. The first issue will be received by the subscriber one month after the moneyis 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 monthsXxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxOn January 2, Year 1, Martin Company purchased equipment costing $36,300, with anestimated 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 MachineCompany 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 thatdepreciation has already been recorded for the current year.
(36300 – 2200)/11*9= 27,90036300 – 7822 – 27900 = 578xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxOn January 2, Year 1, Edwards Company purchased equipment costing $17,700, with anestimated 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 MachineCompany 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 andthat depreciation has already been recorded for the current year.

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 549 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Spring
Professor
Zach Houk
Tags
Balance Sheet, The Land, Generally Accepted Accounting Principles, Prepaid Insurance

Newly uploaded documents

Show More

Newly uploaded documents

Show More

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture