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Emergency help needed in an hour I'll rate At the end of the period, Carson Company had the following balances in selected accounts: Materials $
Emergency help needed in an hour I'll rate
At the end of the period, Carson Company had the following balances in selected accounts:
Materials | $ 80,000 |
Finished goods | 190,000 |
Work in process | 70,000 |
Cost of goods sold | 1,000,000 |
Factory overhead | 30,000 |
Required:
(a) The factory overhead balance is relatively small; prepare the journal entry to close the factory overhead account assuming a debit balance. What does a debit balance mean? | |
(b) The factory overhead balance is relatively small; prepare the journal entry to close the factory overhead account assuming a credit balance. What does a credit balance mean? | |
Refer to the Chart of Accounts for exact wording of account titles. |
Chart of Accounts
CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carson Company | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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General Journal
(a) The factory overhead balance is relatively small; prepare the journal entry to close the factory overhead account assuming a debit balance on December 31. | |
(b) The factory overhead balance is relatively small; prepare the journal entry to close the factory overhead account assuming a credit balance on December 31. | |
Refer to the Chart of Accounts for exact wording of account titles. |
PAGE 1
JOURNAL
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | |
---|---|---|---|---|---|
1 |
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2 |
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3 |
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4 |
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Analysis
What does a debit balance mean?
A debit balance indicates that the factory overhead was .
What does a credit balance mean?
A debit balance indicates that the factory overhead was
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