To determine Record the journal entries of Company G. Explanation Journal entry : Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically. Journal entries of Company G are as follows: a. Cash borrowed from banks: Date Accounts title and explanation Debit ($) Credit ($) Cash (+A) 30,000 Notes payable (+L) 30,000 (To record cash borrowed from bank) Table (1) b. Issuance of common stock: Date Accounts title and explanation Debit ($) Credit ($) Cash 15,000 Common stock 50 Additional paid-in capital 14,950 (To record the issuance of common stock) Table (2) Working note 1: Calculate the value of common stock: Common stock = Number of share × Par value per share =500 share × $0 .10 =$50 Working note 2: Calculate the value of additional paid in capital: Additional paid-in capital = Number of shares × ( Market value of per share − Par value of per share ) = 500 shares × ( $ 30 − $ 0.10 ) = 500 shares × $29 .9 =$14,950 c

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ISBN: 9781260696295

Author: Libby

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Chapter 2, Problem 8E

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Record the journal entries of Company G.

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Chapter 2, Problem 7E

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Cullumber Company uses a job-order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on the basis of direct labour cost in Department D, direct labour hours in Department E, and machine hours in Department K. In establishing the predetermined overhead rates for 2022, the following estimates were made for the year. Department D E K Manufacturing overhead $1,280,000 $1,500,000 $840,000 Direct labour costs $1,600,000 $1,312,500 $472,500 Direct labour hours 105,000 125,000 42,000 Machine hours 420,000 525,000 120,000 The following information pertains to January 2022 for each manufacturing department. Department D E K Direct materials used Direct labour costs $147,000 $132,300 $81,900 $126,000 $115,500 $39,375 Manufacturing overhead incurred $103,950 $128,600 $73,950 Direct labour hours 8,400 11,550 3,675 Machine hours 35,700 47,250 10,380 Your answer is partially correct. Calculate the predetermined overhead rate for each department.…

Chapter 2 Solutions

FINANCIAL ACCOUNTING (LL)-W/CONNECT

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