Accounting is an art of collecting, recording, summarizing and presenting the financial information in meaningful output. The person who does the accounting is called “Accountant”. The accountant follows some principles to do accounting; the principles are called ‘Accounting Principles”. Accounting assumptions are the fundamental base for applying accounting principles. Accounting principles are rules and guidelines to do accounting for different business situations and transactions. To Match: The statement with the accounting principles.

Question

Want to see the full answer?

Answer 1

Question

Chapter 1, Problem 7E

Summary Introduction

Concept Introduction:

Accounting is an art of collecting, recording, summarizing and presenting the financial information in meaningful output. The person who does the accounting is called “Accountant”. The accountant follows some principles to do accounting; the principles are called ‘Accounting Principles”. Accounting assumptions are the fundamental base for applying accounting principles. Accounting principles are rules and guidelines to do accounting for different business situations and transactions.

To Match: The statement with the accounting principles.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Fairfield Company's payroll costs for the most recent month are summarized here: Item Hourly labor unges Description 920 hours $27 per hour 190 hours for Job 101 340 hours for Job 102 Factory supervision Production engineer Factory Janitorial work Selling, general, and administrative salaries Total payroll costs Required: 390 hours for Job 103 Total Cost $ 5,130 9,180 10,530 $ 24,840 4,350 7,100 1,200 8,800 $ 46,298 1. & 2. Prepare the journal entries for payroll and to apply manufacturing overhead to production. The company applies manufacturing overhead to products at a predetermined rate of $54 per direct labor hour Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. View transaction list Journal entry worksheet A B Record Fairfield Company's payroll costs to be paid at a later date. Note Enter debits before credits. S.No Date 1 Account Title Debit Credit

No wrong answer

L.L. Bean operates two factories that produce its popular Bean boots (also known as "duck boots") in its home state of Maine. Since L.L. Bean prides itself on manufacturing its boots in Maine and not outsourcing, backorders for its boots can be high. In 2014, L.L. Bean sold about 450,000 pairs of the boots. At one point during 2014, it had a backorder level of about 100,000 pairs of boots. L.L. Bean can manufacture about 2,200 pairs of its duck boots each day with its factories running 24/7. In 2015, L.L. Bean expects to sell more than 500,000 pairs of its duck boots. As of late November 2015, the backorder quantity for Bean Boots was estimated to be about 50,000 pairs. Question: Now assume that 5% of the L.L. Bean boots are returned by customers for various reasons. L. Bean has a 100% refund policy for returns, no matter what the reason. What would the journal entry be to accrue L.L. Bean's sales returns for this one pair of boots?