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The journal entry needed to record P5,000 of advertising for Westwood Manufacturing would include: a debit to Advertising Expense a credit to Advertising Expense a debit to Manufacturing Overhead

The journal entry needed to record P5,000 of advertising for Westwood Manufacturing would include: a debit to Advertising Expense a credit to Advertising Expense a debit to Manufacturing Overhead

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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When ordinary shares are sold on subscription shareholders' equity account called Subscription Receivable is used to record the par value of the shares issued the Ordinary Shares account is credited when the subscription contract is signed and a down payment is received the Ordinary Shares account is credited when the subscription price has been fully paid and there is issued the Ordinary Shares account is not used. Shares issued on subscription are credited to Subscribed Ordinary Shares, a permanent shareholders' equity account. The journal entry needed to record P5,000 of advertising for Westwood Manufacturing would include: a debit to Advertising Expense a credit to Advertising Expense a debit to Manufacturing Overhead a credit to Manufacturing Overhead
Transcribed Image Text:When ordinary shares are sold on subscription shareholders' equity account called Subscription Receivable is used to record the par value of the shares issued the Ordinary Shares account is credited when the subscription contract is signed and a down payment is received the Ordinary Shares account is credited when the subscription price has been fully paid and there is issued the Ordinary Shares account is not used. Shares issued on subscription are credited to Subscribed Ordinary Shares, a permanent shareholders' equity account. The journal entry needed to record P5,000 of advertising for Westwood Manufacturing would include: a debit to Advertising Expense a credit to Advertising Expense a debit to Manufacturing Overhead a credit to Manufacturing Overhead
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