Question

NON STOCK FOR CASH. THE PAR VALUE 1. JOURNALIZE THE PURCHASE OF $50,000 RAW MATERIALS 2. JOURNALIZE THE ISSUANCE OF 1,000 SHARES OF COMMON STOCK FOR CASH, IS $2/SH AND THE SELLING PRICE IS $60/SH. 3. JOURNALIZE THE ASSIGNMENT OF MANUFACTURING OVERHEAD TO WORK IN PROL OVERHEAD IS APPLIED AT 110% OF DIRECT LABOR. DIRECT LABOR WAS $70,000, 4. JOURNALIZE THE ISSUANCE OF $250,000 BONDS FOR CASH FOR 98. 5. NAME THE 3 TYPES OF PRODUCT COSTS 6. JOURNALIZE THE DECLARATION OF A 7% STOCK DIVIDEND WHEN THERE WERE 100,000 COMMON SHARES OUTSTANDING, PAR VALUE IS $2/SH AND THE SELLING PRICE IS 560/SH 7. COMPUTE DIRECT MATERIALS USED IF: BEGINNING RAW MATERIALS=$50,000 RAW MATERIALS PURCHASED=$20,000 ENDING RAW MATERIALS=$30,000 8. JOURNALIZE THE PURCHASE OF BONDS IN ANOTHER COMPANY FOR $300,000 CASH. 9. COMPUTE MANUFACTURING OVERHEAD BASED ON THE FOLLOWING: ADVERTISING EXPENSE=$1,000 INDIRECT MATERIAL=$2,000 INDIRECT LABOR=$3,000 FACTORY DEPRECIATION=$4,000 10. JOURNALIZE THE YEAR END ENTRY TO CLOSE OUT $400,000 NET INCOME FOR ABC CORPORATION 11. COMPUTE COST OF GOODS MANUFACTURED BASED ON THE FOLLOWING: BEGINNING WORK IN PROCESS=$20,000 ENDING WORK IN PROCESS=$5,000 DIRECT MATERIALS USED=$6,000 DIREC LABOR=$7,000 MANUFACTURING OVERHEAD=$8,000 12. JOURNALIZE THE PAYMENT OF FACTORY UTILITIES FOR $8,000 13. JOURNALIZE THAT $2,000 RAW MATERIALS WERE REQUESTED INTO PRODUCTION: $1900 SPECIFIC JOBS AND THE BALANCE AS INDIRECT MATERIAL 14. JOURNALIZE THE WEEKLY PAYROLL OF $5,000, $4000 TO WORKERS AND THE BALANCET PAYROLL TAXES 15. JOURNALIZE, BASED ON 14 ABOVE, OUT OF THE $5,000, $3500 WAS FOR THE ASSEMBU WORKERS AND THE BALANCE WAS FOR THE FACTORY INSPECTOR.

This is accounting class steps one by one from 1-15 entry

Answer 1

Please find attached answers for questions 1 to 15:

Credit Explanation Debit 50,000.00 Ques No. Dr. / Cr. Account Title 1 Dr Raw Materials Inventory Cr Accounts Payable (or) Cash (to record purchase of raw material) 50,000.00 2 Dr 60,000.00 Cash Paid in capital - Common shares Additional Paid in Capital (To record issuance of shares at premium) 1000 shares @ $60/sh 2,000.00 1000 shares @ $2/sh par value 58,000.00 Balancing figure 3 Dr 70,000.00 77,000.00 Direct Labor 110% of direct labor = $70000 * 110% Dr Work in process Inventory Manufacturing Overhead Factory Wages (to record assignment of direct labor & OH to WIP) [cr 147,000.00 Dr Dr 245,000.00 5,000.00 $ 250000 / 100 * 98 Balancing Figure Cash Bond issued at Discount Bond Payable (to record issuance of bond at discount) 250,000.00 3 types of product cost: a. Direct Material b. Direct Labor c. Manufacturing Overhead - Indirect Material - Indirect Labor - Other Indirect Cost 6 Dr 420,000.00 Retained Earnings Paid in capital - Common shares Additional paid in capital (to record issuance of 7% stock dividend) 100000 shares * 7% * $ 60 / sh 14,000.00 100000 shares * 7% * $ 2/sh 406,000.00 Balancing figure Raw Material consumed computation: Opening Raw Material Add: Purchases Less: Closing Raw Material Raw Material consumed 50,000.00 20,000.00 30,000.00 40,000.00 300,000.00 Investment in Bond Cash (To record invesment in bond of another company) 300,000.00

Debit Credit Explanation Ques No. Dr. / Cr. Account Title Manufacturing Overhead computation: Indirect Material Indirect Labor Factory Depreciation Total Manufacturing Overhead 2,000.00 3,000.00 4,000.00 9,000.00 400,000.00 10 Dr Cr Net Income (or) Income Summary (or) Profit & Loss account Retained Earnings (To record transfer of net income to Retained Earnings) 400,000.00 11 Cost of goods manufactured computation: Direct Material Direct Labor Manufacturing Overhead WERF 6,000.00 7,000.00 8,000.00 21,000.00 20,000.00 41,000.00 5,000.00 Add: Opening Work in process Less: Closing Work in process Total Cost of goods manufactured 36,000.00 12 Dr 8,000.00 lar Factory Utilities Cash (To record payment of factory utilities) 8,000.00 13 Dr Dr cr 1,900.00 100.00 Work in process inventory Manufacturing Overhead Raw Material inventory (To record transfer of raw materials to work in process) 2,000.00 5,000.00 14 Dr Jor Tar Factory payroll Expense Wages Payable Payroll Taxes payable (To record wages payable to workers along with payroll taxes) 4,000.00 1,000.00 15 Dr Dr 3,500.00 1,500.00 Factory payroll expense Salaries & Wages Expense Salaries & Wages Payable (To records salaries and wages payable) 5,000.00