The Fuller Company issued a $500,000, 5-year, 6% bond at par. It is a semiannual bond with interest paid on June 30th and December 31st. The entry to record the sale of the bond would include a: A. $500,000 credit to Cash. B. $500,000 credit to Bonds Payable. C. $30,000 debit to Interest Expense. D. $500,000 debit to Accounts Payable. A manufacturing company applies overhead based on direct labor hours. At the beginning of the year, it was estimated that overhead costs would be $450,000 and direct labor hours would be 90,000. Actual overhead costs incurred were $459,000 and actual direct labor hours were 95,000. What is the amount of overapplied or underapplied overhead at the end of the year? A. $16,000 overapplied B. $16,000 underapplied C. $9,000 overapplied D. $9,000 underapplied Mesh Merchandising Company expects to purchase $86,000 of materials in July and $118,000 of materials in August. Three-quarters of all purchases are paid for in the month of purchase, and the other one-fourth are paid for in the month following the month of purchase. How much will August's cash disbursements for materials purchases be? A) $118,000 B) $64,500 C) $88,500 D) $110,000
The Fuller Company issued a $500,000, 5-year, 6% bond at par. It is a semiannual bond with interest paid on June 30th and December 31st. The entry to record the sale of the bond would include a: A. $500,000 credit to Cash. B. $500,000 credit to Bonds Payable. C. $30,000 debit to Interest Expense. D. $500,000 debit to Accounts Payable. A manufacturing company applies overhead based on direct labor hours. At the beginning of the year, it was estimated that overhead costs would be $450,000 and direct labor hours would be 90,000. Actual overhead costs incurred were $459,000 and actual direct labor hours were 95,000. What is the amount of overapplied or underapplied overhead at the end of the year? A. $16,000 overapplied B. $16,000 underapplied C. $9,000 overapplied D. $9,000 underapplied Mesh Merchandising Company expects to purchase $86,000 of materials in July and $118,000 of materials in August. Three-quarters of all purchases are paid for in the month of purchase, and the other one-fourth are paid for in the month following the month of purchase. How much will August's cash disbursements for materials purchases be? A) $118,000 B) $64,500 C) $88,500 D) $110,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The Fuller Company issued a $500,000, 5-year, 6% bond at par. It is a semiannual bond with
interest paid on June 30th and December 31st. The entry to record the sale of the bond
would include a:
A. $500,000 credit to Cash.
B. $500,000 credit to Bonds Payable.
C. $30,000 debit to Interest Expense.
D. $500,000 debit to Accounts Payable.
A manufacturing company applies overhead based on direct labor
hours. At the beginning of the year, it was estimated that overhead
costs would be $450,000 and direct labor hours would be 90,000. Actual
overhead costs incurred were $459,000 and actual direct labor hours
were 95,000. What is the amount of overapplied or underapplied
overhead at the end of the year?
A. $16,000 overapplied
B. $16,000 underapplied
C. $9,000 overapplied
D. $9,000 underapplied
Mesh Merchandising Company expects to purchase $86,000 of materials in July and
$118,000 of materials in August. Three-quarters of all purchases are paid for in the month of
purchase, and the other one-fourth are paid for in the month following the month of
purchase. How much will August's cash disbursements for materials purchases be?
A) $118,000
B) $64,500
C) $88,500
D) $110,000
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