Determining supplies purchased The supplies and supplies expense accounts at December 31, after adjusting entries have been posted at the end of the first year of operations, are shown in the following T accounts: Supplies Supplies Expense Bal. 2,550 Bal. 7,120 Determine the amount of supplies purchased during the year.
Determining supplies purchased The supplies and supplies expense accounts at December 31, after adjusting entries have been posted at the end of the first year of operations, are shown in the following T accounts: Supplies Supplies Expense Bal. 2,550 Bal. 7,120 Determine the amount of supplies purchased during the year.
Solution Summary: The author explains that deferrals are classified into two types: prepaid expenses and unearned revenues. The expense recognition principle refers to the expenses that should match with revenue.
The supplies and supplies expense accounts at December 31, after adjusting entries have been posted at the end of the first year of operations, are shown in the following T accounts:
Supplies
Supplies Expense
Bal. 2,550
Bal. 7,120
Determine the amount of supplies purchased during the year.
Definition Definition Entries made at the end of every accounting period to precisely replicate the expenses and revenue of the current period. This is also known as end of period adjustment. It can also refer to financial reporting that corrects errors made previously in the accounting period. Every adjustment entry affects at least one real account and one nominal account.
Headland Company pays its office employee payroll weekly. Below is a partial list of employees and their payroll data for August.
Because August is their vacation period, vacation pay is also listed.
Earnings to Weekly
Vacation Pay to Be
Employee
July 31
Pay
Received in August
Mark Hamill
$5,180
$280
Karen Robbins
4,480
230
$460
Brent Kirk
3,680
190
380
Alec Guinness
8,380
330
Ken Sprouse
8,980
410
820
Assume that the federal income tax withheld is 10% of wages. Union dues withheld are 2% of wages. Vacations are taken the second
and third weeks of August by Robbins, Kirk, and Sprouse. The state unemployment tax rate is 2.5% and the federal is 0.8%, both on a
$7,000 maximum. The FICA rate is 7.65% on employee and employer on a maximum of $142,800 per employee. In addition, a 1.45%
rate is charged both employer and employee for an employee's wages in excess of $142,800.
Make the journal entries necessary for each of the four August payrolls. The entries for the payroll and for the…
The direct materials variance is computed when the materials are purchased
Action to increase net income
Chapter 3 Solutions
Working Papers, Volume 1, Chapters 1-15 for Warren/Reeve/Duchac's Corporate Financial Accounting, 13th + Financial & Managerial Accounting, 13th
Business Essentials (12th Edition) (What's New in Intro to Business)
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