Consulting firm for services received in february p

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consulting firm for services received in February. p. Lynx Technology Company pays a $675 invoice from a consulting firm for services received and recorded in December.
q. Tommy Bahama Corporation completes production of 500 men’s shirts ordered by Macy’s department stores at a cost of $15 each and delivers the order. Answer from Tommy Bahama’s standpoint. Required: For each of the transactions, if an expense is to be recognized in February, indicate the expense account title and amount. If an expense is not to be recognized in February, indicate why.
Activity Expense Account Affected Amount of Expense Incurred in February a. Utilities expense $3,000 b. Advertising expense $300( $900 × 1 month/3 months) incurred in February. The remainder is a prepaid expense (A) that is not incurred until March and April. c. Salary expense $200,000 incurred in February. The remaining half was incurred in January. d. None Expense will be recorded when the related revenue has been earned. e. None Expense will be recorded in the future when the related revenue has been earned. f. Cost of goods sold $450,000 (5,000 books × $90 per book) g. None December expense paid in February.
Activity Expense Account Affected Amount of Expense Incurred in February $96 ( 8 hours × $12 per hour) h. Commission expense $15,500 i. None Will be recorded as depreciation over the equipment’s useful life j. Supplies expense $7,400( $5,000 + $4,000 − $1,600) k. Wages expense l. Insurance expense $200 ( $ 4,800 ÷ 24 months) m. Repairs expense $450 n. Utilities Expense $175 o. Consulting Expense $2,500 p. None December expense paid in February. q. Cost of goods sold $7,500 ( 500 shirts × $15 per shirt)
Exercise 3-6
Eddie Bower Corporation manufactures a variety of goods to a global market. The following transactions occurred during a recent year. Dollars are in thousands. a. Issued common stock to investors for $4,698 cash (example). b. Purchased $813,712 of additional inventory on account. Paid the amount in full with cash. c. Borrowed cash of $39,667. d. Sold $813,712 of products to customers on account; cost of the products sold was $489,698. e. Paid cash dividends of $13,839. f. Purchased for cash $16,048 in additional property, plant, and equipment. g. Incurred $250,000 in selling expenses, paying three-fourths in cash and owing the rest on account. h. Earned $1,800 interest on investments, receiving 90 percent in cash. i. Incurred $1,900 in interest expense to be paid at the beginning of next year. Required: For each of the transactions, complete the tabulation, indicating the effect ( + for increase and − for decrease) of each transaction. (Remember that A = L + SE, R – E = NI, and NI affects SE through Retained Earnings.) Write NE if there is no effect.
Transaction (f) results in an increase in an asset ,property, plant, and equipment, and a decrease in an asset cash. Therefore, there is no net effect on assets. − 1,900 + 1,900 NE − 1,900 + 1,900 NE i. + 1,800 NE +1,800 + 1,800 NE + 1,620 + 180 − 250,000 +250,000 NE − 250,000 + 62,500 − 187,500 g. NE NE NE NE NE +/−16,048 f. NE NE NE − 13,839 NE 13,839 e. + 813,712 + 489,698 + 813,712 + 813,712 NE + 813,712 d.

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