Business
Ricardo Construction began operations on December 1. In setting up its accounting procedures, the company decided to debit expense accounts when it prepays its expenses and to credit revenue accounts when customers pay for services in advance. Prepare journal entries for items a through d and the adjusting entries as of its December 31 period-end for items e through g. a. Supplies are purchased on December 1 for $2,000 cash. b. The company prepaid its insurance premiums for $1,540 cash on December 2. c. On December 15, the company receives an advance payment of $13,000 cash from a customer for remodeling work. d. On December 28, the company receives $3,700 cash from another customer for remodeling work to be performed in January. e. A physical count on December 31 indicates that the Company has $1,840 of supplies available. f. An analysis of the insurance policies in effect on December 31 shows that $340 of insurance coverage had expired. g. As of December 31, only one remodeling project has been worked on and completed. The $5,570 fee for this project had been received in advance and recorded as remodeling fees earned.
Cost of Goods Manufactured for a Manufacturing Company The following information is available for Ethtridge Manufacturing Company for the month ending July 31: Cost of direct materials used in production $1,150,000 Direct labor 966,000 Work in process inventory, July 1 316,400 Work in process inventory, July 31 355,500 Total factory overhead 490,500 Determine Ethtridge's cost of goods manufactured for the month ended July 31. Ethtridge Manufacturing Company Statement of Cost of Goods Manufactured For the Month Ended July 31Factory overhead 1,150,000 Manufacturing costs incurred during July Cost of direct materials used in production $1,150,000 Direct labor 966,000 Factory overhead 490,500 Total manufacturing costs incurred Work in process inventory, July 31 355,500 Total factory overhead 490,500 Determine Ethtridge's cost of goods manufactured for the month ended July 31 Ethtridge Manufacturing Company Statement of Cost of Goods Manufactured For the Month Ended July 31 Factory overhead 1,150,000 Manufacturing costs incurred during July Cost of direct materials used in production 1,150,000 Direct labor 966,000 Factory overhead 490,500 Total manufacturing costs incurred $ 2,606,500 Total manufacturing costs Factory overhead -355,500 Cost of goods manufactured 2,567,400
A local government operates on a calendar-year basis. Prepare journal entries to record the following transactions and events for calendar year 2018. 1. On February 1, 2018, borrowed $400,000 on tax anticipation notes (TANs). The TANs will be repaid with 1.0 percent interest on January 31, 2019. 2. To prepare for issuing financial statements for 2018, accrue interest on the TANs through December 31, 2018. 3. Invested $100,000 in a certificate of deposit (CD) on April 1, 2018. The CD, which pays interest of 0.8 percent, will mature on September 30, 2018. 4. The CD matured on September 30, 2018.