Do not give answer in image Service industry; journal entries and CSRKalogrides & McMillan CPAS incurred the following costs in performing audits during September. The firm uses aWork in Process Inventory account for audit engagement costs and records overhead in fixed and variableoverhead accounts.a. Prepare journal entries for each of the following transactions:Note: Where applicable, list multiple debits in alphabetical order and multiple credits in alphabetical order. -1. Used $10,000 of previously purchased supplies on audit engagements.2. Paid $16,000 of partner travel expenses to an accounting conference.3. Recorded $13,000 of depreciation on laptops used in audits.4. Recorded $3,600,000 of annual depreciation on the Kalogrides & McMillan Building, located in downtown NewYork; 65 percent of the space is used to house audit personnel.5. Accrued audit partner salaries, $400,000.6. Accrued remaining audit staff salaries, $515,800.7. Paid credit card charges for travel costs for client engagements, $38,800.8. One month's prepaid insurance and property taxes expired on the downtown building, $34,600.9. Accrued $6,800 of office assistant wages; the office assistant works only for the audit partners and staff.10. Paid all accrued salaries and wages for the month.Solution:a.1. Work in Process InventorySupplies InventoryTo record supplies usage for audit engagements2. Travel ExpenseAccountCashTo record travel expenses for partner3. Fixed Overhead ControlAccumulated Depreciation-LaptopsTo record laptop depreciation4. Depreciation ExpenseFixed Overhead ControlAccumulated Depreciation-BuildingTo record depreciation on NYC buildingWork in Process Iouentonalllar00++0000000Debit100001600013000195000400000Credit100001600013000 Solution:a.1. Work in Process InventorySupplies InventoryTo record supplies usage for audit engagements2. Travel ExpenseCashTo record travel expenses for partner3. Fixed Overhead Control:Accumulated Depreciation-LaptopsTo record laptop depreciation4. Depreciation ExpenseFixed Overhead ControlAccumulated Depreciation-BuildingTo record depreciation on NYC building5. Work in Process InventorySalaries PayableTo accrue partner salaries6. Work in Process InventorySalaries PayableTo accrue audit salaries7. Work in Process InventoryCashTo record audit-related travel costs8. Fixed Overhead ControlAccountWages PayableTo accrue office assistant wages10. Salaries PayableWages PayableCashTo pay accrued salaries and wagesb. Determine the cost of audit services rendered for September. SCheckType here to search수#00+0+Insurance ExpensePrepaid Insurance and TaxesTo record expiration of prepaid insurance and property taxes on downtown building9. Variable Overhead Control÷=000+#00#÷+##+000Debit100001600013000195000it.4000005158003880022490119706800Credit10000160001300040000051580038800344606880

The process of originally recording commercial transactions in the books of accounts is known as a…

Service industry; journal entries and CSR Kalogrides & McMillan CPAS incurred the following costs in performing audits during September. The firm uses a Work in Process Inventory account for audit engagement costs and records overhead in fixed and variable overhead accounts. a. Prepare journal entries for each of the following transactions: Note: Where applicable, list multiple debits in alphabetical order and multiple credits in alphabetical order. 1. Used $10,000 of previously purchased supplies on audit engagements. 2. Paid $16,000 of partner travel expenses to an accounting conference. 3. Recorded $13,000 of depreciation on laptops used in audits. 4. Recorded $3,600,000 of annual depreciation on the Kalogrides & McMillan Building, located in downtown New York; 65 percent of the space is used to house audit personnel. 5. Accrued audit partner salaries, $400,000. 6. Accrued remaining audit staff salaries, $515,800. 7. Paid credit card charges for travel costs for client engagements, $38,800. 8. One month's prepaid insurance and property taxes expired on the downtown building, $34,600. 9. Accrued $6,800 of office assistant wages; the office assistant works only for the audit partners and staff. 10. Paid all accrued salaries and wages for the month. 4

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q