Exercise PR2-2A Financial & Managerial Accounting Edition 15

JOURNAL Description Debit Credit a. b. C. 1 1 1 1 11 11 e . Computation of cost of jobs finished: Direct Factory Job Materials Direct Labor Overhead Total No. 301 No. 302 No. 303 No. 305 Total g. Computation of cost of jobs sold: Job Total No. 301 No. 302 No. 303 Total2. Work in Process Finished Goods Accounts Payable Accounts Receivable Accum. Depr. - Machinery and Equipment Bal Bal Cost of Goods Sold Factory Overhead Finished Goods Materials 3. Schedule of unfinished jobs: Sales Wages Payable Direct Direct Factory Work in Process Job Materials Labor Overhead Total No. 304 No. 306 Balance of Work in Process, March 31 4. Schedule of completed jobs: Direct Direct Factory Job Materials Labor Overhead Total Finished Goods, March 31 (Job 305)4. Determine the net income 2, 3, 4 PR 2-2A Journal entries and trial balance On October 1, 20Y6, Jay Crowley established Affordable Realty, which completed the following 4. c. $6,770 transactions during the month: a. Jay Crowley transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, $40,000. NOW EXCEL TEMPLATE b. Paid rent on office and equipment for the month, $4,800. c. Purchased supplies on account, $2, 150. d. Paid creditor on account, $1,100. e. Earned sales commissions, receiving cash, $18,750. f. Paid automobile expenses (including rental charge) for month, $1,580, and miscellaneous expenses, $800. g. Paid office salaries, $3,500. h. Determined that the cost of supplies used was $1,300. i. Paid dividends, $1,500. Instructions 1. Journalize entries for transactions (a) through (i), using the following account titles: Cash, Sup- plies, Accounts Payable, Common Stock, Dividends, Sales Commissions, Rent Expense, Office may be omitted. Salaries Expense, Automobile Expense, Supplies Expense, Miscellaneous Expense. Explanations 2. Prepare T accounts, using the account titles in (1). Post the journal entries to these accounts, placing the appropriate letter to the left of each amount to identify the transactions. entry do not need a balance. Determine the account balances after all posting is complete. Accounts containing only a single3. Prepare an unadjusted trial balance as of October 31, 20Y6. 4. Determine the following: a. Amount of total revenue recorded in the ledger. b. Amount of total expenses recorded in the ledger. C. Amount of net income for October. 5. Determine the increase or decrease in retained earnings for October