Service industry; journal entries and CSR Kalogrides 3 . McMillan CPAs incurred the following costs in performing avdits during September, The firm wses a Work in Process imventory account for audit engagement conts and records overhead in foxed and variable overhead accounts. a. Prepare journal entries for each of the following transactons: Nore: Where applicable, list multiple debits in alphabetical order and multigle credits in alphabetical order, 1. Used 5.,000 of previously purchased wpplies on audt engagements. 2. Paid 54.800 of nartrec travel expenses to an accounting conference. 3. Recorded $3,900 of depreciation on laptops used in audits. 4. Recorded 51,080,000 of annual depreciation on the Kalogrides \&. McMillan buiding located in downtown New York; 65 percent of the space is used to hause audit personnet. 5. Accrued ausit parther walares, 3120,000 . 6. Accrued remaining audit staff sataries, 5154,740 7. Paid credit card charges for travel costs for client engagements. 511,640 . 8. One month's prepaid insurance and property taves expsed on the downtown bulding 510,330 . 9. Accrued \$2,040 of office assistant wages; the otfice assistant works onty for the audit partners and staff. 10. Paid all accrued salaries and wages for the month. 1. Used $3,000 of previously purchased supplies on audit engagements: 2. Paid $4,800 of partner travel expenses to an accounting conference: 3. Recorded $3,900 of depreciation on laptops used in audits. 4. Recorded 51,080,000 of annual depreciavon on the Kalogrides 8 . McMittan Building, located in downtown New York, 65 percent of the space is used to house audit personnel. 5. Accrued audit partner salaries, $120,000. 6. Accrued remaining audit staff salaries, 5154,740 . 7. Paid credit card charges for travel costs for client engagements. 511,640 8. One monthy prepaid insurance and property taxes expired on the downtown building, 510,380 . 9. Accrued $2,040 of office assistant wages; the office assistant works only for the audit partners and staff. 10. Paid all accrued salaries and wages for the month Solution: 3. Fixed Overhead Control Accumulated Depreciation -Laptops To record laptop depreciation 4. Depreciation Expense Fixed Overhead Control Accumulated Depreciation-Building To record depreciation on NYC building 5. Work in Process inventory Salaries Payable To accrue partner salaries 6. Work in Process inventory Salaries Payable To accrue audit salaries 7. Work in Process Inventory To record audit-related travel costs 8. Fixed Overhead Control insurance Expense Prepaid insurance and Taxes To record expiration of prepaid insurance and property taxes on downtown building 9. Variable Overhead Control Wages Payable To accrue office assistant wages 10. Salaries Payable Wages Payable Cash To pavakcenued salades and woges b. Determine the cost of audit services rendered for September. I Service industry; journal entries and CSR Kalogrides \& Mckiftan CPAs incurred the following costs in performing audits during September. The firm uses a Work in Process inventory account for audit enyagement costs and records overtyead in fixed and variable overhead octounts. a. Frepare journal entries for each of the following transaction: Note: Where applicable, list miltiple debits in alphabetical order and multiple credits in alphabetical order. 1. Used $3,000 of previously purchased supplies on audit engagements. 2. Paid 54,800 of partner vavel expenses to an accounting conlerence. 3. Pecorded $3,900 of depreciation on taptops used in audis. 4. Pecorded 51,080,000 of annual depreciation on the Kalogrides \& McMMilan Building located in downtown New York: 65 percent of the spice is used to house audit personnel 5. Accrued audit partner salaries, $120,000. 6. Accrued remaining audit staff salaries. 5154,740. 7. Paid cresit card charges for travel costs for chem engagements, 311,640. 3. One month's prepaid insurance and property taxes expled on the downtom builing 810380 . 9. Actrued 12,040 of office assistam wages the office assatant works only for the ouds partners and yaef. 10. Paid all accrued salaries and wages for the morthi
