Journal is the primary record of business transactions in chronological (date wise) order. Journal entry contains two effects, one is debit and the other is credit, under the double entry book keeping system.
Procedure for debiting and crediting an account:
• Increase in assets account, increase in expenses account, and decrease in liabilities account should be debited.
• Decrease in assets account, increase in revenue account, and increase in liabilities account should be credited.
All transactions affect the
Treasury stock is a type of stock that companies hold either by not issuing the shares or by buying back or repurchasing some shares.
The amount invested in a business by its shareholder or the donated capital and earnings from operations less any dividends issued gives the stockholders’ equity. The stockholders’ equity gives the ownership claim on the total assets of a business. The amount left after satisfying the creditors, belongs to the stockholders’ claim on the assets. It also includes common stock and
Retained earnings statement:
Retained earnings statement is a financial statement that shows the amount of net income retained by a company at a particular point of time for reinvestment and to pay its debts and obligations. It shows the amount of retained earnings that is not paid as dividends to the shareholders.
1.
To prepare: The journal entries, statement of retained earnings, and stockholder’s equity.
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Chapter 11 Solutions
Financial and Managerial Accounting: Information for Decisions
- - Effects Manufacturing produces a pesticide chemical and uses process costing. There are three processing departments Mixing, Refining, and Packaging. On January 1, the Refining Department had 4,000 gallons of partially processed product in production. During January, 30,000 gallons were transferred in from the Mixing Department, and 30,000 gallons were completed and transferred out. At the end of the month, 4,000 gallons of partially processed product remained in the Refining Department. See additional details below. Refining Department ending balance at January 31 Percent completed for materials cost: 94% Percent completed for conversion cost: 76% What was the total number of equivalent units of production for conversion costs for the month of January for the Refining Department? a. 3,040 units. b. 30,000 units. c. 3,760 units. d. 33,040 units.arrow_forwardGeneral Accounting Question give true answerarrow_forwardA company performed $25,905 of services and received $9,000 in cash with the remaining amount to be paid in 60 days with no interest. What would the effect of this transaction be on the company's current month- end accounting equation? A. $25,905 increase in Assets; No effect on Liabilities; $25,905 increase in Stockholders' Equity. B. $16,905 increase in Assets; No effect on Liabilities; $16,905 increase in Stockholders' Equity. C. $25,905 increase in Assets; $25,905 increase in Liabilities; No effect on Stockholders' Equity. D. $9,000 increase in Assets; $16,905 decrease in Liabilities; $25,905 increase in Stockholders' Equity.arrow_forward
- Give correct option for following data of this general accounting questionarrow_forwardGeneral Accountingarrow_forwardIf an inventory is updated perpetually, which of the equations is correct? A. Cost of goods sold = Beginning inventory - Purchases - Ending inventory B. Cost of goods sold = Beginning inventory + Purchases + Ending inventory C. Ending inventory = Beginning inventory + Purchases - Cost of goods sold D. Ending inventory = Beginning inventory + Purchases + Cost of goods soldarrow_forward
- Please provide solution for this general accounting questionarrow_forwardIf the materials price variance is $3000 F and the materials quantity and labor variances are each $2700 U, what is the total materials variance? a. $2700 U. b. $300 F. c. $3150 U. d. $3000 F.arrow_forwardsub. general accountarrow_forward
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