Prepare journal entries to record the events and transactions 1-11 1. Record raw material purchases on credit 2. Record the requisition of direct materials 3. Record the indirect materials 4. Record the entry for direct labor, paid in cash 5. Record the entry for indirect labor, paid in cash 6. Record the entry to apply overhead to jobs 136, 138 and 139 7. Record the transfer of completed jobs 136, 138 and 139 to finished goods 8. Record the entry for sales on account for jobs 136 and 138 9. Record the entry for the cost of jobs 136 and 138 10. Record the entry for the actual overhead costs incurred 11. Record the entry to apply overhead to jobs 137 and 140 (work in process)
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.
2. Prepare
1. Record raw material purchases on credit
2. Record the requisition of direct materials
3. Record the indirect materials
4. Record the entry for direct labor, paid in cash
5. Record the entry for indirect labor, paid in cash
6. Record the entry to apply
7. Record the transfer of completed jobs 136, 138 and 139 to finished goods
8. Record the entry for sales on account for jobs 136 and 138
9. Record the entry for the cost of jobs 136 and 138
10. Record the entry for the actual overhead costs incurred
11. Record the entry to apply overhead to jobs 137 and 140 (work in process)
![Depreciation of factory building
Depreciation of factory equipment
Expired factory insurance
Accrued property taxes payable
$ 70,000
37,500
12,000
36,500
i. Applied overhead at month-end to the Work in Process Inventory account (for Job 137 and 140) using
the predetermined overhead rate of 200% of direct labor cost.
. Prepare journal entries to record the events and transactions a through i.
View transaction list
Journal entry worksheet
1
2
3
4
5 6 7 8
11
>
Record raw material purchases on credit.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
а.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F98e87c1e-d790-489b-a066-bf9d39e643de%2F7c76ece5-ff06-4704-940a-2a0374771384%2F3e2l8o_processed.jpeg&w=3840&q=75)
![Watercraft's predetermined overhead rate is 200% of direct labor. Information on the company's
production activities during May follows.
a. Purchased raw materials on credit, $220,000.
b. Materials requisitions record use of the following materials for the month.
$ 48,500
33,000
19,800
23,200
7,000
131,500
20,000
Job 136
Job 137
Job 138
Job 139
Job 140
Total direct materials
Indirect materials
Total materials requisitions
$ 151,500
c. Time tickets record use of the following labor for the month. These wages were paid in cash.
$ 12,200
10,700
37,700
39,200
Job 136
Job 137
Job 138
Job 139
3,400
103,200
Job 140
Total direct labor
25,500
$ 128,700
Indirect labor
Total labor cost
d. Applied overhead to Jobs 136, 138, and 139.
e. Transferred Jobs 136, 138, and 139 to Finished Goods Inventory.
f. Sold Jobs 136 and 138 on credit at a total price of $545,000.
g. Recorded the cost of goods sold for Jobs 136 and 138.
h. Incurred the following actual other overhead costs during the month.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F98e87c1e-d790-489b-a066-bf9d39e643de%2F7c76ece5-ff06-4704-940a-2a0374771384%2Fbw7mvdm_processed.jpeg&w=3840&q=75)
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