1. How much is gross profit?2. How much is the total liability for the company in its Balance sheet?3. How much is the total Equity for the company in its Balance sheet? Click in the account title sections of the journal entry and select the correct account titles to bedebited and credited from the pick list. Correct debit/credit selections will turn the cells green.Assume the business commenced operations on January 1, and the summary entries below arethe only ones related to job costing activities. Calculate and enter the correct amounts thatwould appear in financial statements as of the end of January. Correct values will turn the cellsgreen.GENERAL JOURNALDateDuring Jan.GENERAL JOURNALDateDuring Jan.During Jan.Raw Materials InventoryAccounts PayableTo record purchase of raw materialsDuring Jan.GENERAL JOURNALDateSalaries PayableFactory OverheadDuring Jan.Work in Process InventoryRaw Materials InventoryGENERAL JOURNALDateTo transfer $10,000 of raw materials to production, incur$8,000 of direct labor, and apply $12,000 of overheadAccounts ReceivableAccountsFinished Goods InventoryWork in Process InventoryTo transfer completed units to finished goodsSalesGENERAL JOURNALDateAccountsCost of Goods SoldAccountsTo record sales of finished goodsAccountsHow much is gross profit? >>>>AccountsFinished Goods InventoryTo transfer finished goods to cost of goods soldHow much is in ending raw materials inventory? >>>>How much is in ending work in process inventory? >>>>How much is in ending finished goods inventory? >>>>Debit25,000Debit30,000Debit20,000Debit45,000Debit15,000Credit25,000Credit10,0008,00012,000Credit20,000Credit45,000Credit15,00015,00010,0005,00030,000 This is a new manufacturing corporation that issued$50000 common stock for cash on the first day. Alloverhead expenses are paid immediately by cash. Tomake it easy, there are no other operating expenses andno income tax. No Dividend is declared for the year. Postall journal entries in the General Ledger T-accounts andusing their respective balances prepare an IncomeStatment and Balance Sheet for the first month of theoperation. Use a blank paper for posting into GeneralLedger and preparation of the financial statements.

Cost accounting is defined as the branch of accounting used by manufacturing entities in order to…

Answered: GENERAL JOURNAL Date During Jan.…

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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1. How much is gross profit?

2. How much is the total liability for the company in its Balance sheet?

3. How much is the total Equity for the company in its Balance sheet?

Click in the account title sections of the journal entry and select the correct account titles to be
debited and credited from the pick list. Correct debit/credit selections will turn the cells green.
Assume the business commenced operations on January 1, and the summary entries below are
the only ones related to job costing activities. Calculate and enter the correct amounts that
would appear in financial statements as of the end of January. Correct values will turn the cells
green.
GENERAL JOURNAL
Date
During Jan.
GENERAL JOURNAL
Date
During Jan.
During Jan.
Raw Materials Inventory
Accounts Payable
To record purchase of raw materials
During Jan.
GENERAL JOURNAL
Date
Salaries Payable
Factory Overhead
During Jan.
Work in Process Inventory
Raw Materials Inventory
GENERAL JOURNAL
Date
To transfer $10,000 of raw materials to production, incur
$8,000 of direct labor, and apply $12,000 of overhead
Accounts Receivable
Accounts
Finished Goods Inventory
Work in Process Inventory
To transfer completed units to finished goods
Sales
GENERAL JOURNAL
Date
Accounts
Cost of Goods Sold
Accounts
To record sales of finished goods
Accounts
How much is gross profit? >>>>
Accounts
Finished Goods Inventory
To transfer finished goods to cost of goods sold
How much is in ending raw materials inventory? >>>>
How much is in ending work in process inventory? >>>>
How much is in ending finished goods inventory? >>>>
Debit
25,000
Debit
30,000
Debit
20,000
Debit
45,000
Debit
15,000
Credit
25,000
Credit
10,000
8,000
12,000
Credit
20,000
Credit
45,000
Credit
15,000
15,000
10,000
5,000
30,000

This is a new manufacturing corporation that issued
$50000 common stock for cash on the first day. All
overhead expenses are paid immediately by cash. To
make it easy, there are no other operating expenses and
no income tax. No Dividend is declared for the year. Post
all journal entries in the General Ledger T-accounts and
using their respective balances prepare an Income
Statment and Balance Sheet for the first month of the
operation. Use a blank paper for posting into General
Ledger and preparation of the financial statements.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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