Barker Products is a job shop. The following events occurred in September: 1. Purchased $14,100 of materials on account. 2. Issued $15,600 in direct materials to the production department. 3. Purchased $12,100 of materials on account. 4. Issued $955 of supplies from the materials inventory. 5. Paid for the materials purchased in transaction (1). 5. Paid $20,300 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant. 7. Incurred direct labor costs of $24,200, which were credited to Wages Payable. 3. Issued $1,355 of supplies from the materials inventory. 9. Applied overhead on the basis of 85 percent of $24,200 direct labor costs. 3. Recognized depreciation on manufacturing property, plant, and equipment of $12,700. The following balances appeared in the accounts of Barker Products for September: Beginning $ 35,000 Ending 6,210 35,300 Materials Inventory Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold $ 31,700 57,600 Required: a. Prepare journal entries to record the transactions. b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Required A Required Prepare journal entries to record the transactions. Note: 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.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
