Answered: During January, its first month of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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List of accounts Accounts Payable Accounts Receivable Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment Cash Cost of Completed Service Contracts Cost of Goods Sold Depreciation Expense Employer Fringe Benefits Payable Employer Payroll Taxes Payable Factory Labor Factory Wages Payable Finished Goods Inventory Manufacturing Overhead Operating Overhead Payroll Liabilities Prepaid Insurance Prepaid Property Taxes Property Tax Payable Raw Materials Inventory Salaries and Wages Payable Sales Revenue Service Contracts in Process Service Salaries and Wages Supplies Utilities Payable Work in Process inventory

During January, its first month of operations, Ivanhoe Company accumulated the following manufacturing costs: raw materials
purchased $5,800 on account, factory labor incurred $7,300, and factory utilities payable $2,100.
Prepare separate journal entries for each type of manufacturing cost. (List all debit entries before credit entries. Credit account titles are
automatically indented when amount is entered. Do not indent manually.)
Date Account Titles and Explanation
Jan. 31
31
31
(To record purchase of raw materials on account)
(To record factory labor costs)
(To record entry for utilities payable)
Debit
Credit

Definition Definition Benefits in addition to compensation that companies give to their employees. Fringe benefits can boost morale and productivity and keep employees motivated. Companies often use fringe benefits as a competitive advantage to recruit and retain employees. Examples of fringe benefits include pensions, vacation time, tuition reimbursement, free or subsidized meals, and gym memberships.

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