2. Prepare journal entries to record the events described above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
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Problem 3-43 Basic Job-Order Costing; Journal Entries (LO 3-4, 3-5)
[The following information applies to the questions displayed below.]
Burlington Clock Works manufactures fine, handcrafted clocks. The firm uses a job-order costing system, and
manufacturing overhead is applied on the basis of direct-labor hours. Estimated manufacturing overhead for the year is
$240,000. The firm employs 10 master clockmakers, who constitute the direct-labor force. Each of these employees is
expected to work 2,000 hours during the year, which represents each employee's practical capacity. The following events
occurred during October.
a. The firm purchased 4,000 board feet of mahogany veneer at $11 per board foot.
b. Twenty brass counterweights were requisitioned for production. Each weight cost $24.
c. Five gallons of glue were requisitioned for production. The glue cost $20 per gallon. Glue is treated as an indirect
material.
d. Depreciation on the clockworks building for October was $8,000.
e. A $600 utility bill was paid in cash.
f. Time cards showed the following usage of labor:
Job number G60: 12 grandfather's clocks, 1,000 hours of direct labor
Job number C81: 20 cuckoo clocks, 700 hours of direct labor
The master clockmakers (direct-labor personnel) earn $20 per hour.
g. The October property tax bill for $900 was received but has not yet been paid in cash.
h. The firm employs laborers who perform various tasks such as material handling and shop cleanup. Their wages for
October amounted to $2,600.
i. Job number G60, which was started in July, was finished in October. The total cost of the job was $14,400.
j. Nine of the grandfather's clocks from job number G60 were sold in October for $1,500 each.
Problem 3-43 Part 2
2. Prepare journal entries to record the events described above. (If no entry is required for a transaction/event, select "No journal
entry required" in the first account field.)
View transaction list View journal entry worksheet
No
Transaction
General Journal
Debit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa2b7b11e-2c5b-4326-843a-06debd46df97%2F6e9af4b8-437e-41cb-aed4-f1ec52f8f75f%2Fw9i7drb_processed.jpeg&w=3840&q=75)
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