Journal Entries : Journal entries are the entries that are made in the books of accounts to record every transaction that happens in the business in the chronological order. Accounting rules for journal entries : To Increase balance of the account : Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains. To Decrease balance of the account : Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains. Disposal of Asset: Disposal of asset means to discard a particular asset. It can be done by completely getting rid of that asset, or by exchanging it or by selling it for cash. To prepare: Journal entries.

Question

Want to see the full answer?

Answer 1

Question

Chapter 8, Problem 17E

To determine

Journal Entries:

Journal entries are the entries that are made in the books of accounts to record every transaction that happens in the business in the chronological order.

Accounting rules for journal entries:

To Increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

To Decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

Disposal of Asset:

Disposal of asset means to discard a particular asset. It can be done by completely getting rid of that asset, or by exchanging it or by selling it for cash.

To prepare: Journal entries.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Please need help with this accounting question

Carla Vista Manufacturing Company uses a job order cost system and keeps perpetual inventory records. June 1 Purchased raw materials for $23,600 on account. 8 Raw materials requisitioned by production: $9,440 Direct materials Indirect materials 1,180 Paid factory utilities, $2,478 and repairs for factory equipment, $9,440. 15 25 Incurred $122,000 of factory labor. 25 Time tickets indicated the following: Direct Labor (7,000 hrs x $14 per hr) $98,000 Indirect Labor (3,000 hrs x $8 per hr) 24,000 $122,000 45 25 Applied manufacturing overhead to production based on a predetermined overhead rate of $7 per direct labor hour worked. 28 30 Goods costing $18,020 were completed in the factory and were transferred to finished goods inventory. Goods costing $15,020 were sold for $20,020 on account. Prepare journal entries to record the above transactions during the month of June. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit…

PART 2. (22 marks) Mangal Furnishings produce serving trays for the tourist industry in a five-stage process - Cutting & Shaping, Assembly, Sanding, Finishing and Packaging. Upon entering the finishing process, before the trays are stained and polished, a specialized piece of equipment is used to engrave a logo on each tray. After Packaging, the trays are sent to the business warehouse for delivery to customers. The following data relates to the Finishing Process for the month of March during which 3,800 trays valued at $597.90 each were transferred in from the Sanding Process. Other production costs incurred during the month are summarized as follows: Direct Materials Added Direct Manufacturing Wages Hireage cost of specialized logo equipment Manufacturing Overhead $343,380 $830,150 $21,300 $412,100 Process inspection occurs during the process and normally 2% of the trays entering the Finishing process are rejected and sold as scrap to local retailers at $750 each. During the month…