Answered step by step
Verified Expert Solution
Question
1 Approved Answer
in the course of the routine checking of all journal entries prior to preoare year-end reports, Betty Eller diacovered serveral strange entries. In the course
in the course of the routine checking of all journal entries prior to preoare year-end reports, Betty Eller diacovered serveral strange entries.
In the course of routine checking of all journal entries prior to preparine year-end reports Betty Eller discovered several strange entries. She recalled that the president's son Joe had come in to help out during an especially busy time and that he had recorded some journal entries. She was relieved that there were only a few of his entries and even more relieved that he had included rather lengthy explanations. The entries Joe made were (1) Work in Process Inventory 20,000 Cash 20,000 (This is for materials put into process. I don't find the record that we paid for these so I'm creditin Cash because I know we'll have to pay for them sooner or later) (23) Manufacturing Overhead 8.500 Cash 8.500 (This is for bonuses pald to salespeople I know theyre part of overhead, and I can't find an account called "Non Factory Overhead" or "OtherOverhead' so I'm putting it in Manufacturing Overhead. I have the checkstubs, sol know we paid these.) (3) Wages Expense 100 000 Cash 100,000 (This is for the factory workers' wages have a note that employer payroll taxes are $16,200. I still think that's part of wages expense and that we have to pay it all in cash sooner or later, sol credited Cath for the wages and the tas) Work in Process Inventory 3.000 Raw Materials inventory 3.000 (This is for the due used in the factory, I know we used this to make the products even though we didn't use very much on one of the products. I got it out of Inventory so I credited an invertory account) How should Joe have recorded the first event (Credit account titles are automatically indented when the amount is entered. Do not indent manually Account Titles Debit Credit Work in Processinventory 20000 Raw Materials triventory 20000 e Textbook and Media List of Accounts Attempts: 1 of Sused (a2) Your answer is correct How should Joe have recorded the second event? Credit account titles are automatically indented when the mount is entered. De noindent molly Account Titles Sales tonus Debit Credit 2100 DO eTextbook and Media List of Accounts How should Joe have recorded the third event? (Credit account titles are automatically indented when the amount is entered. Do not Indent manually Debit Credit Account Titles Factory Waga Payable 308000 Employer Pringe Benefits Payable 16200 Factory Wipes Payable 8500 e Textbook and Media List of Accounts Storm Attempts 2 of 5 used SA Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started