Which of the given option is correct regarding a debit entry.

Question

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Answer 1

Question

Chapter 2, Problem 1QC

To determine

To identify: Which of the given option is correct regarding a debit entry.

Expert Solution & Answer

Answer to Problem 1QC

a. Increases assets.

Explanation of Solution

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.
Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

Option “b, c, and d” are not correct answer as per above explanation, only option “a” is correct answer as per above explanation. Hence, the correct answer is option a.

Conclusion

Therefore, the correct option is (a), increases assets.

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Students have asked these similar questions

Palladium, Incorporated recently lost a portion of its records in an office fire. The following information was salvaged from the accounting records. Cost of Goods Sold $ 67,000 Work-in-Process Inventory, Beginning 11,300 Work-in-Process Inventory, Ending 9,400 Selling and Administrative Expense 16,000 Finished Goods Inventory, Ending 16,100 Finished Goods Inventory, Beginning ?question mark Direct Materials Used ?question mark Factory Overhead Applied 12,400 Operating Income 14,220 Direct Materials Inventory, Beginning 11,180 Direct Materials Inventory, Ending 6,140 Cost of Goods Manufactured 61,880 Direct labor cost incurred during the period amounted to 1.5 times the factory overhead. The Chief Financial Officer of Palladium, Incorporated has asked you to recalculate the following accounts and to report to him by the end of the day. What is the amount in the finished goods inventory at the beginning of the year?

Which of the following statements is incorrect regarding manufacturing overhead? Multiple Choice Manufacturing overhead includes both fixed and variable costs. Manufacturing overhead is an indirect cost to units or products. Actual overhead costs are used in the cost accounting process. Actual overhead costs tend to remain relatively constant over various output levels.

Palladium, Incorporated recently lost a portion of its records in an office fire. The following information was salvaged from the accounting records. Cost of Goods Sold $ 72,500 Work-in-Process Inventory, Beginning 13,500 Work-in-Process Inventory, Ending 10,500 Selling and Administrative Expense 18,750 Finished Goods Inventory, Ending 19,125 Finished Goods Inventory, Beginning ?question mark Direct Materials Used ?question mark Factory Overhead Applied 13,500 Operating Income 14,825 Direct Materials Inventory, Beginning 11,675 Direct Materials Inventory, Ending 6,525 Cost of Goods Manufactured 67,050 Direct labor cost incurred during the period amounted to 1.5 times the factory overhead. The Chief Financial Officer of Palladium, Incorporated has asked you to recalculate the following accounts and to report to him by the end of the day. What is the amount of direct materials purchased?

Answer 2

Question

Chapter 2, Problem 1QC

To determine

To identify: Which of the given option is correct regarding a debit entry.

Expert Solution & Answer

Answer to Problem 1QC

a. Increases assets.

Explanation of Solution

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.
Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

Option “b, c, and d” are not correct answer as per above explanation, only option “a” is correct answer as per above explanation. Hence, the correct answer is option a.

Conclusion

Therefore, the correct option is (a), increases assets.

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Answer 3

Question

Chapter 2, Problem 1QC

To determine

To identify: Which of the given option is correct regarding a debit entry.

Expert Solution & Answer

Answer to Problem 1QC

a. Increases assets.

Explanation of Solution

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.
Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

Option “b, c, and d” are not correct answer as per above explanation, only option “a” is correct answer as per above explanation. Hence, the correct answer is option a.

Conclusion

Therefore, the correct option is (a), increases assets.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 2, Problem 1QC

To determine

To identify: Which of the given option is correct regarding a debit entry.

Expert Solution & Answer

Answer to Problem 1QC

a. Increases assets.

Explanation of Solution

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.
Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

Option “b, c, and d” are not correct answer as per above explanation, only option “a” is correct answer as per above explanation. Hence, the correct answer is option a.

Conclusion

Therefore, the correct option is (a), increases assets.

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Answer 5

Chapter 2, Problem 1QC

To determine

To identify: Which of the given option is correct regarding a debit entry.

Expert Solution & Answer

Answer to Problem 1QC

a. Increases assets.

Explanation of Solution

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.
Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

Option “b, c, and d” are not correct answer as per above explanation, only option “a” is correct answer as per above explanation. Hence, the correct answer is option a.

Conclusion

Therefore, the correct option is (a), increases assets.

Answer 6

Chapter 2, Problem 1QC

To determine

To identify: Which of the given option is correct regarding a debit entry.

Expert Solution & Answer

Answer to Problem 1QC

a. Increases assets.

Explanation of Solution

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.
Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

Option “b, c, and d” are not correct answer as per above explanation, only option “a” is correct answer as per above explanation. Hence, the correct answer is option a.

Conclusion

Therefore, the correct option is (a), increases assets.

Answer 7

Chapter 2, Problem 1QC

To determine

To identify: Which of the given option is correct regarding a debit entry.

Answer 8

Expert Solution & Answer

Answer to Problem 1QC

a. Increases assets.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.
Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

Option “b, c, and d” are not correct answer as per above explanation, only option “a” is correct answer as per above explanation. Hence, the correct answer is option a.