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1.
T-Account: T-Account is a form of ledger account in which the debit entries are shown at the left side of the account and credit entries are shown at the right side of the account.
Worksheet: A worksheet is a spreadsheet used while preparing a financial statement. It is a type of form having multiple columns and it is used in the adjustment process. The use of a worksheet is optional for any organization. A worksheet can neither be considered as a journal nor a part of the general ledger.
Adjusted
Income Statement: Income Statement is a financial statement that is prepared by all the companies by enumerating all the expenses and revenues to calculate the resulting difference of Net
Closing entries: Closing entries are recorded in order to close the temporary accounts such as incomes and expenses by transferring them to the permanent accounts such as retained earnings. It is passed at the end of the accounting period, to transfer the final balance.
Post-Closing Trial Balance: After passing all the
Formula:
To Open: T-accounts using the balances in the unadjusted trial balance.
2.
To Complete: The worksheet for the year ended December 31, 2018.
3.
To prepare: Adjusting entries.
4.
To prepare: An adjusted trail balance.
5.
To prepare: Company’s income statement for the year ended December 31, 2018.
6.
To Prepare: The closing entries for Company at December 31, 2018.
7.
To Prepare: A post-closing trial balance.
8.
To calculate: The Company’s current ratio at December 31, 2018.
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Chapter 4 Solutions
Horngren's Financial & Managerial Accounting Plus MyLab Accounting with Pearson eText -- Access Card Package (6th Edition)
- Cariman Company is a manufacturer with two production departments (Machining and Assembly) as well as two support departments (Human Resources and Information Services).For the last quarter of 2020, Cariman’s cost records indicate the following:SUPPORT PRODUCTIONHuman Resources (HR)Information Services(IS)MachiningAssemblyTotalBudgeted overhead costs before any inter-department cost allocations$400,000$2,000,000$10,912,000$14,916,000$28,228,000Support work supplied by HR (Number of employees)025%40%35%100%Support work supplied by IS (Processing costs)10%030%60%100%Required:1. Allocate the two support departments’ costs to the two operating departments using the following methods:a. Direct method b. Step-down method (allocate HR first) c. Step-down method (allocate IS first) d. The Algebraic method.2. Compare and explain differences in the support-department costs allocated to each production department. 3. What approaches might be used to decide the sequence in which to allocate…arrow_forwardQuick answer of this accounting questionsarrow_forwardGet correct answer this financial accounting question without use Aiarrow_forward
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