Introduction to Business
OER 2018 Edition
ISBN: 9781947172548
Author: OpenStax
Publisher: OpenStax College
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Textbook Question
Chapter 16.4, Problem 2CC
Identify the major types and features of long term debt.
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Record the following journal entries for Young Company:
(Click the icon to view the transactions.)
(Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
6. Purchased raw materials on account, $5,000.
Date
6.
Accounts Payable
Accounts and Explanation
Debit
Credit
Accounts Receivable
Cash
Cost of Goods Sold
Finished Goods Inventory
Manufacturing Overhead
Raw Materials Inventory
Sales Revenues
Wages Payable
Work-in-Process Inventory
More info
6. Purchased materials on account, $5,000.
7. Used $2,000 in direct materials and $700 in indirect materials in production.
8. Incurred $9,000 in labor costs, of which 60% was direct labor.
Print
Done
- X
The following information pertains to Miller Company for the year
(Click the icon to view the information.)
13.
Calculate the predetermined overhead allocation rate using direct labor hours as the allocation base
14.
Determine the amount of overhead allocated during the year. Record the journal entry.
15.
Determine the amount of underallocated or overallocated overhead. Record the journal entry to adjust Manufacturing Overhead.
Data table
13. Calculate the predetermined overhead allocation rate using direct labor hours as the allocation base
Estimated overhead cost
$
420,000
Estimated direct labor hours
12,000
Predetermined overhead
allocation rate
Estimated manufacturing overhead
Estimated direct labor hours
$420,000
Actual manufacturing overhead
12,000 hours Actual direct labor hours
$500,000
12,650 hours
35
per direct labor hour
14. Determine the amount of overhead allocated during the year. Record the journal entry.
Predetermined overhead allocation rate
35
Actual direct labor…
Problem 3-5B
Applying the accounting cycle
P1 P3 P4 P5 P6
On July 1, Lula Plume created a new self-storage business, Safe Storage Co. The following transactions occurred during the company's first month.
July 2
Plume invested $30,000 cash and buildings worth $150,000 in the company in exchange for its common stock.
3
5
10.
14.
24.
28.
29.
30.
31
The company rented equipment by paying $2,000 cash for the first month's (July) rent.
The company purchased $2,400 of office supplies for cash.
The company paid $7,200 cash for a 12-month insurance policy. Coverage begins on July 11.
The company paid an employee $1,000 cash for two weeks' salary earned.
The company collected $9,800 cash for storage revenue from customers.
The company paid $1,000 cash for two weeks' salary earned by an employee.
The company paid $950 cash for minor repairs to buildings.
The company paid $400 cash for this month's telephone bill.
The company paid $2,000 cash in dividends.
The company's chart of accounts follows:…
Chapter 16 Solutions
Introduction to Business
Ch. 16.1 - What is the role of financial management in a...Ch. 16.1 - How do the three key activities of the financial...Ch. 16.1 - What is the main goal of the financial manager?...Ch. 16.2 - Distinguish between short- and long-term expenses.Ch. 16.2 - What is the financial manager's goal in cash...Ch. 16.2 - Describe a firm's main motives in making capital...Ch. 16.3 - Distinguish between unsecured and secured...Ch. 16.3 - Briefly describe the three main types of unsecured...Ch. 16.3 - Discuss the two ways that accounts receivable can...Ch. 16.4 - Distinguish between debt and equity.
Ch. 16.4 - Identify the major types and features of long term...Ch. 16.5 - Compare the advantages and disadvantages of debt...Ch. 16.5 - Discuss the costs involved in issuing common...Ch. 16.5 - Briefly describe these sources of equity: retained...Ch. 16.6 - Distinguish between primary and secondary...Ch. 16.6 - Describe the types of bonds available to investors...Ch. 16.6 - Why do natural funds and exchange-traded funds...Ch. 16.7 - How do the broker markets differ from dealer...Ch. 16.7 - Why is the globalization of the securities markets...Ch. 16.7 - Briefly describe the key provisions of the main...Ch. 16.8 - How has the role of CFO changed since the passage...Ch. 16.8 - Describe the major changes taking place in the...Ch. 16 - In late July 2017, senior management at Equifax. a...Ch. 16 - What issues should executives of a company such as...Ch. 16 - How else could Blue Apron have raised funds to...Ch. 16 - Use a search engine and a site such as Yahoo!...
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