John's Water Slides makes custom water slides for hotels. On September 1, there were three jobs in process, Jobs 812, 813, and 814. Two more jobs were started during September, Jobs 815 and 816. By September 30, Jobs 812, 814, and 816 were finished. The following data has been collected: Job 812 Job 813 Job 814 Job 815 Job 816 9/1 Balance $615 $830 $945 --- --- Direct materials 750 235 1,280 $200 $915 Direct labor 420 115 560 320 875 Overhead is applied at the rate of 120% of direct labor cost. Jobs are sold at cost plus 60%. Selling and administrative expenses for September totaled $2,950. By September 30, Jobs 812 were 816 are sold, but the customer who ordered Job 814 decided he did not want the slide so it is still in the warehouse. What is John's operating income for the month of September? a. $127.40 b. $8,206.40 c. $3,077.40 d. $0 e. None of these.
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.
|
|
Job 812 |
Job 813 |
Job 814 |
Job 815 |
Job 816 |
|
9/1 Balance |
$615 |
$830 |
$945 |
--- |
--- |
|
Direct materials |
750 |
235 |
1,280 |
$200 |
$915 |
|
Direct labor |
420 |
115 |
560 |
320 |
875 |
What is John's operating income for the month of September?
| a. |
$127.40
|
|
| b. |
$8,206.40
|
|
| c. |
$3,077.40
|
|
| d. |
$0
|
|
| e. |
None of these.
|
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