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
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
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter2: Accounting For Materials
Section: Chapter Questions
Problem 14P: An examination of Buckhorn Fabricators records reveals the following transactions: a. On December...
Related questions
Question
Do not give answer in image
![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.
Solution:
a.
1. Work in Process Inventory
Supplies Inventory
To record supplies usage for audit engagements
2. Travel Expense
Account
Cash
To record travel expenses for partner
3. Fixed Overhead Control
Accumulated Depreciation-Laptops
To record laptop depreciation
4. Depreciation Expense
Fixed Overhead Control
Accumulated Depreciation-Building
To record depreciation on NYC building
Work in Process Iouenton
alllar
00
+
+
00
00
000
Debit
10000
16000
13000
195000
400000
Credit
10000
16000
13000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8868685d-db6b-42ee-8763-d30829dbb190%2F89111888-6132-49b3-8dab-b22d4f3ced79%2Flyoerg_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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.
Solution:
a.
1. Work in Process Inventory
Supplies Inventory
To record supplies usage for audit engagements
2. Travel Expense
Account
Cash
To record travel expenses for partner
3. Fixed Overhead Control
Accumulated Depreciation-Laptops
To record laptop depreciation
4. Depreciation Expense
Fixed Overhead Control
Accumulated Depreciation-Building
To record depreciation on NYC building
Work in Process Iouenton
alllar
00
+
+
00
00
000
Debit
10000
16000
13000
195000
400000
Credit
10000
16000
13000
![Solution:
a.
1. Work in Process Inventory
Supplies Inventory
To record supplies usage for audit engagements
2. Travel Expense
Cash
To record travel expenses for partner
3. Fixed Overhead Control:
Accumulated Depreciation-Laptops
To record laptop depreciation
4. Depreciation Expense
Fixed Overhead Control
Accumulated Depreciation-Building
To record depreciation on NYC building
5. Work in Process Inventory
Salaries Payable
To accrue partner salaries
6. Work in Process Inventory
Salaries Payable
To accrue audit salaries
7. Work in Process Inventory
Cash
To record audit-related travel costs
8. Fixed Overhead Control
Account
Wages Payable
To accrue office assistant wages
10. Salaries Payable
Wages Payable
Cash
To pay accrued salaries and wages
b. Determine the cost of audit services rendered for September. S
Check
Type here to search
수
#
00
+
0
+
Insurance Expense
Prepaid Insurance and Taxes
To record expiration of prepaid insurance and property taxes on downtown building
9. Variable Overhead Control
÷
=
000
+
#
00
#
÷
+
#
#
+
000
Debit
10000
16000
13000
195000
it.
400000
515800
38800
22490
11970
6800
Credit
10000
16000
13000
400000
515800
38800
34460
6880](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8868685d-db6b-42ee-8763-d30829dbb190%2F89111888-6132-49b3-8dab-b22d4f3ced79%2F6q01r4f_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Solution:
a.
1. Work in Process Inventory
Supplies Inventory
To record supplies usage for audit engagements
2. Travel Expense
Cash
To record travel expenses for partner
3. Fixed Overhead Control:
Accumulated Depreciation-Laptops
To record laptop depreciation
4. Depreciation Expense
Fixed Overhead Control
Accumulated Depreciation-Building
To record depreciation on NYC building
5. Work in Process Inventory
Salaries Payable
To accrue partner salaries
6. Work in Process Inventory
Salaries Payable
To accrue audit salaries
7. Work in Process Inventory
Cash
To record audit-related travel costs
8. Fixed Overhead Control
Account
Wages Payable
To accrue office assistant wages
10. Salaries Payable
Wages Payable
Cash
To pay accrued salaries and wages
b. Determine the cost of audit services rendered for September. S
Check
Type here to search
수
#
00
+
0
+
Insurance Expense
Prepaid Insurance and Taxes
To record expiration of prepaid insurance and property taxes on downtown building
9. Variable Overhead Control
÷
=
000
+
#
00
#
÷
+
#
#
+
000
Debit
10000
16000
13000
195000
it.
400000
515800
38800
22490
11970
6800
Credit
10000
16000
13000
400000
515800
38800
34460
6880
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Principles of Cost Accounting](https://www.bartleby.com/isbn_cover_images/9781305087408/9781305087408_smallCoverImage.gif)
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
![College Accounting (Book Only): A Career Approach](https://www.bartleby.com/isbn_cover_images/9781337280570/9781337280570_smallCoverImage.gif)
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
![Principles of Cost Accounting](https://www.bartleby.com/isbn_cover_images/9781305087408/9781305087408_smallCoverImage.gif)
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
![College Accounting (Book Only): A Career Approach](https://www.bartleby.com/isbn_cover_images/9781337280570/9781337280570_smallCoverImage.gif)
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,