Prepare adjusting journal entries, as needed, for the following items.
A. The Supplies account shows a balance of $530, but a count of supplies reveals only $280 on hand at year-end.
B. The company initially records the payments of all insurance premiums as prepaid insurance. The unadjusted trial balance at year-end shows a balance of $570 in Prepaid Insurance. A review of insurance policies reveals that $140 of insurance is unexpired.
C. Employees work Monday through Friday, and salaries of $2,900 per week are paid each Friday. The company's year-end falls on Tuesday.
D. At year-end, the company received a utility bill for December's electricity usage of $250 that will be paid in early January.

Answer:

Explanation:

Journal Entry is the way to record transactions, i.e business transactions into the record of account which is called Journal Book. It involves the identification of those account present in the transaction,know the type of account, then with accounting rule, record the transaction.

CHECK THE ATTACHMENT FOR THE PREPARED JOURNAL

Company B Company B is an IT hosting company that provides a range of shared services used by a wide variety of customers. One of Company B's customers is Company A

National Orthopedics Co. issued 8% bonds, dated January 1, with a face amount of $550,000 on January 1, 2021. The bonds mature on December 31, 2024 (4 years). For bonds of similar risk and maturity the market yield was 10%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Required:
1. Determine the price of the bonds at January 1, 2021.
2. Prepare the journal entry to record their issuance by National on January 1, 2021.
3. Prepare an amortization schedule that determines interest at the effective rate each period.
4. Prepare the journal entry to record interest on June 30, 2021.
5. Prepare the appropriate journal entries at maturity on December 31, 2024.

Blast it! said David Wilson, president of Teledex Company. "We’ve just lost the bid on the Koopers job by $4,000. It seems we’re either too high to get the job or too low to make any money on half the jobs we bid."
Teledex Company manufactures products to customers’ specifications and uses a job-order costing system. The company uses a plantwide predetermined overhead rate based on direct labor cost to apply its manufacturing overhead (assumed to be all fixed) to jobs. The following estimates were made at the beginning of the year:
Department
Fabricating Machining Assembly Total Plant
Direct labor $215,000 $107,500 $322,500 $645,000
Manufacturing
overhead $376,250 $430,000 $96,750 $903,000
Jobs require varying amounts of work in the three departments. The Koopers job, for example, would have required manufacturing costs in the three departments as follows:
Department
Fabricating Machining Assembly Total Plant
Direct materials $4,500 $500 $2,900 $7,900
Direct labor $5,800 $800 $7,700 $14,300
Manufacturing overhead ? ? ? ?
The company uses plant-wide overhead rate to apply manufacturing overhead cost to jobs.
Required:
1. Assuming use of a plant-wide overhead rate:
A. Compute the rate for the current year.
B. Determine the amount of manufacturing overhead cost that would have been applied to the Koopers job.
2. Suppose that instead of using a plant-wide overhead rate, the company had used a separate predetermined overhead rate in each department. Under these conditions:
A. Compute the rate for each department for the current year.
B. Determine the amount of manufacturing overhead cost that would have been applied to the Koopers job.
3. Assume that it is customary in the industry to bid jobs at 150% of total manufacturing cost (direct materials, direct labor, and applied overhead).
A. What was the company's bid price on the Koopers job if a plant-wide overhead rate had been used to apply overhead cost?
B. What would the bid price have been if departmental overhead rates had been used to apply overhead cost?
4. At the end of the year, the company assembled the following actual cost data relating to all jobs worked on during the year.
Department
Fabricating Machining Assemble Total Plant
Direct materials $205,000 $17,500 $129,000 $351,500
Direct labor 225,000 123,000 277,000 625,000
Manufacturing
overhead $387,000 $463,000 $86,400 $936,400

A company has the following adjusted trial​ balance:________. Account Debit Credit Cash ​$1,100 Accounts Receivable ​ 1,000 Inventory ​1,900 Supplies ​1,800 Prepaid Rent 400 Land ​ 5,800 Building ​40,500 Accumulated Depreciation—Building ​ $8,900 Accounts Payable ​ 7,800 Unearned Revenue ​ 4,000 Notes​ Payable, due 2020 ​2,400 Common Stock ​6,600 Retained Earnings ​3,200 Dividends 900 Service Revenue ​ 32,200 Rent Expense ​1,500 Supplies Expense ​ 1,200 Salaries Expense ​ 6,100 Depreciation Expense—Building ​ 1,000 Utilities Expense ​ 1,900 Totals ​ $65,100 ​$65,100 Which closing entry is​ needed?

Crane Company has these comparative balance sheet data:

CRANE COMPANY Balance Sheets December 31

2020 2019

Cash $33,900 $67,800
Accounts receivable (net) 158,200 135,600
Inventory 135,600 113,000
Plant assets (net) 452,000 406,800
$779,700 $723,200
Accounts payable $113,000 $135,600
Mortgage payable (15%) 226,000 226,000
Common stock, $10 par 316,400 271,200
Retained earnings 124,300 90,400
$779,700 $723,200

Additional information for 2020:

1. Net income was $29,200.
2. Sales on account were $379,100. Sales returns and allowances amounted to $28,000.
3. Cost of goods sold was $203,800.
4. Net cash provided by operating activities was $58,000.
5. Capital expenditures were $27,500, and cash dividends were $19,600.

Compute the following ratios at December 31, 2017. Round current ratio to 2 decimal places, and all other answers to 1 decimal place, Use 365 days for calculation.


a. Current ratio _______:1
b. Accounts receivable turnover _______times
c. Average collection period _______days
d. Inventory turnovefr _______times
e. Days inventory _______days
f. Free cash flow $_______

Listed below are costs found in various organizations:

1. Property taxes, factory
2. Boxes used for packaging detergent produced by the company.
3. Salespersons' commissions.
4. Supervisor's salary, factory
5. Depreciation, executive autos.
6. Wages of workers assembling computers.
7. Insurance, finished goods warchouses.
8. Lubricants for production equipment.
9. Advertising costs.
10. Microchips used in producing calculators
11. Shipping costs on merchandise sold.
12. Magazine subscriptions, factory lunchroom.
13. Thread in a garment factory.
14. Executive life insurance.
15. Ink used in textbook production.
16. Fringe benefits, assembly-line workers.
17. Yarn used in sweater production.
18. Wages of receptionist, executive offices.

Required:

a. Prepare an answer sheet.
b. For each cost item, indicate whether it would be variable or fixed with respect to the number of units produced and sold and then whether it would be a selling cost, an administrative cost or a manufacturing cost.

Following are income statements for Hossa Corporation for 20X1 and 20x2. Percentage of sales amounts are also shown for each operating expense item. Hossa's income tax rate was 22% in 20X1 and 24% in 20X2
2011 2012
($ in millions) ($ in millions) of sales % ($ in millions) of sales % Sales
Cost of sales $5,500.0 $6,500.0
Other operating expenses (2,475.0) 45% (3,055.0) 47%
Operating income (825.0) 15% (1,040.0) 16%
Provision for income taxes 2,200.0 2,405,0
Net income 484.0 (577.2)
Income tax rate $1,716.0 $2,827.8
22% 24%
Hossa’s management was pleased that 20X2 net income was up 6.5% from the prior year. Although you are also happy with the increase in net income, you are not so sure the news is all positive. You have modeled Hossa’s income as follows:
NET INCOME = SALES × (1 − COGS% − OPEX%) × (1 − TAX RATE)
Using this model, net income in 20X1 is computed as $5,500 × (1 − 45% − 15%) × (1 − 22%) = $1,716.0. Net income in 20X2 is computed as $6,500 × (1 − 47% − 16%) × (1 − 24%) = $1,827.8.
Required:
Prepare a cause-of-change analysis to show the extent to which each of the following items contributed to the $111.8 million increase in Hossa’s net income from 20X1 to 20X2: (Do not round intermediate calculations.
Increase in sales (SALES)
Increase in cost of sales as a percent of sales (COGS%)
Increase in other operating expenses as a percent of sales (OPEX%)
Increase in income tax rate (TAX RATE)

In each of the following cases, determine how much GDP and each of its components is affected, if at all:
A. Debbie spends $200 to buy her husband dinner at the finest restaurant in Boston.
B. Sarah spends $1800 on a new laptop to use in her publishing business. The laptop was built in China.
C. Jane spends $1200 on a computer to use in her editing business. She got last year’s model on sale for a great price from a local manufacturer.
D. General Motors builds $500 million worth of cars, but consumers only buy $470 million worth of them.
Computing GDP: 2018 (base year) 2019 2020 P Q P Q P QGood A $30 $900 $31 $1000 $36 $1050Good B $100 $192 $102 $200 $100 $205
2. Use the above data to solve these problems:A. Compute nominal GDP in 2018.B. Compute real GDP in 2019.C. Compute the GDP deflator in 2020.

ASSUMPTIONS
Sales Price per Unit $49.99
Gross Margin = (Revenues - cost of goods sold) / Revenues 25%
Depreciation & amortization as a % of capital expenditures 25%
Tax Rate 35%
Year 2014 2015 2016 2017 2018
Units Sold 200,000
Growth Rate Of Unit Sold 5% 13% 15% 9%
Operating Expenses as % of Sales (2014 Only) 10%
Operating Expense Growth Rate 4% 4% 4% 4%
Capital Expenditures $1,750,000 $1,775,000 $1,800,000 $1,825,000 $1,850,000
Interest Expense $0 $10,000 $10,000 $10,000 $12,500
Income Statement
Year 2014 2015 2016 2017 2018
Units Sold
Price per Unit
Revenue
Cost of goods sold
Gross Profit (defined as Revenue - COGS)
Operating Expenses
Earnings Before Interest Taxes Depreciation And Amortization (Ebitda)
EBITDA / Revenue (%)
Depreciation and Amortization
Operating Income (defined as EBITDA - Depreciation and Amortization)
Interest Expense
Pre-tax Net Income (Operating Income - Interest Expense)
Income Taxes
Net Income (Pret-tax Net Income - Income Taxes)
If Depreciation & Amortization as a % of Capital Expenditures is changed to 30%, what is Net Income in 2017?

Lemony Company made sales of $38,000 million during 2018. Cost of goods sold for the year totaled $16,340 million. At the end of 2017, Lemony’s inventory stood at $1,800 million, and Lemony ended 2018 with inventory of $2,000 million. Compute Lemony’s gross profit percentage and rate of inventory turnover for 2018.Begin by computing Lemony’s gross profit percentage for 2018.

Crane Company applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under- or overapplication of overhead for the period:

Estimated annual overhead cost $1700000
Actual annual overhead cost $1675000
Estimated machine hours 400000
Actual machine hours 390000


$1657500 applied and $17500 overapplied
$1657500 applied and $17500 underapplied
$1675000 applied and neither under-nor overapplied
$1700000 applied and $17500 overapplied

Cross Roads Manufacturing currently uses a traditional costing system. The company allocates overhead to its two​ products, Zips and​ Dees, using a predetermined manufacturing overhead rate based on direct labor hours. Here is data related to the​ company's two​ products:

Zips Dees
Direct materials per unit $140.00 $100.00
Direct labor per unit $55.00 $50.00
Direct labor hours per unit 2.0 1.5
Annual production 25,000 40,000

Information about the company's estimated manufacturing overhead for the year follows:

Activities Activity measures Estimated overhead cost
Supervision and maintenance Direct labor hours $2,200,000
Batch costs Number of batches $212,500
Engineering changes Number of engineering hours $180,000
Total estimated manufacturing overhead for the year $2,592,500

Expected activity
Zips Dees Total
Supervision and maintenance 50,000 60,000 110,000
Batch costs 2,000 500 2,500
Engineering changes 1,800 1,200 3,000

The amount of manufacturing overhead that would be allocated to one unit of Zips using an activity-based costing system would be closest to:

a. $32.86.
b. $11.95.
c. $51.12.
d. $64.81.

The number of internal disk drives​ (in millions) made at a plant in Taiwan during the past 5 years​ follows:______. Year Disk Drives 1 1402 160 3 1904 200 5 ​ 210a) Using simple linear regression LOADING...​, the forecast for the number of disk drives to be made next year​ = 243.6 disk drives ​(round your response to one decimal​ place). ​b) The mean squared error​ (MSE) when using simple linear regression​ = 4.5 ​(round your response to one decimal​ place). ​c) The mean absolute percentage error​ (MAPE) when using simple linear regression​ = 1.04​% ​(round your response to one decimal​ place).

The following balance sheet for the Los Gatos Corporation was prepared by a recently hired accountant. In reviewing the statement you notice several errors.
LOS GATOS CORPORATION
Balance Sheet
At December 31, 2018
Assets
Cash $ 74,000
Accounts receivable 131,000
Inventories 72,000
Machinery (net) 137,000
Franchise (net) 47,000
Total assets $ 461,000
Liabilities and Shareholders’ Equity
Accounts payable $ 84,000
Allowance for uncollectible accounts22,000
Note payable 89,000
Bonds payable 127,000
Shareholders’ equity 139,000
Total liabilities and shareholders’ equity $
461,000
Additional information:
Cash includes a $37,000 restricted amount to be used for repayment of the bonds payable in 2022.
The cost of the machinery is $224,000.
Accounts receivable includes a $37,000 note receivable from a customer due in 2021.
The note payable includes accrued interest of $22,000. Principal and interest are both due on February 1, 2019.
The company began operations in 2013. Income less dividends since inception of the company totals $52,000.
67,000 shares of no par common stock were issued in 2013. 100,000 shares are authorized.
Required:
Prepare a corrected, classified balance sheet. (Amounts to be deducted should be indicated by a minus sign.)

Consider two neighboring island countries called Euphoria and Bellissima. They each have 4 million labor hours available per week that they can use to produce jeans, corn, or a combination of both. The following table shows the amount of jeans or corn that can be produced using 1 hour of labor.Country Jeans Corn (Pairs per hour of labor) (Bushels per hour of labor)Euphoria 5 20Bellissima 8 16Initially, suppose Bellissima uses 1 million hours of labor per week to produce jeans and 3 million hours per week to produce corn, while Euphoria uses 3 million hours of labor per week to produce jeans and 1 million hours per week to produce corn. Consequently, Euphoria produces 15 million pairs of jeans and 20 million bushels of corn, and Bellissima produces 8 million pairs of jeans and 48 million bushels of corn. Assume there are no other countries willing to trade goods, so in the absence of trade between these two countries, each country consumes the amount of jeans and corn it produces.Euphoria’s opportunity cost of producing 1 pair of jeans is of corn, and Bellissima's opportunity cost of producing 1 pair of jeans is of corn. Therefore, has a comparative advantage in the production of jeans, and has a comparative advantage in the production of corn.Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces jeans will producemillion pairs per week, and the country that produces corn will producemillion bushels per week.In the following table, enter each country's production decision on the third row of the table (labeled "Production"). Euphoria Bellissima Jeans Corn Jeans Corn (Millions of pairs) (Millions of bushels) (Millions of pairs) (Millions of bushels)Without TradeProduction 15 20 8 48Consumption 15 20 8 48With TradeProduction Imports/Exports Consumption Gains from TradeIncrease in Consumption Suppose the country that produces jeans trades 18 million pairs of jeans to the other country in exchange for 54 million bushels of corn.In the previous table, use the dropdown menus across the row labeled "Imports/Exports" to select the amount of each good that each country imports and exports. Then enter each country’s final consumption of each good on the line labeled "Consumption."When the two countries did not specialize, the total production of jeans was 23 million pairs per week, and the total production of corn was 68 million bushels per week. Because of specialization, the total production of jeans has increased bymillion pairs per week, and the total production of corn has increased bymillion bushels per week.Because the two countries produce more jeans and more corn under specialization, each country is able to gain from trade.Calculate the gains from trade—that is, the amount by which each country has increased its consumption of each good relative to the first row of the previous table. Enter this difference in the boxes across the last row (labeled "Increase in Consumption").

Homer deposited $3,000 this morning into an account that pays 5 percent interest, compounded annually. Bart also deposited $3,000 this morning at 5 percent interest, compounded annually. At the end of each period, Homer will withdraw his interest earnings and put into a new account that pays 8 percent interest, compounded annually. Given this, which one of the following statements is true?

a. ​Barb will earn more interest the second year than Andy.
b. ​Andy will earn more interest in year three than Barb will.
c. ​Barb will earn more interest the first year than Andy will.
d. ​Andy will earn compound interest.
e. ​After five years, Andy and Barb will both have earned the same amount of interest.

On January 2, Chaz transfers cash of $143,400 to a newly formed corporation for 100% of the stock. In its initial year, the corporation has net income of $35,850. The income is credited to its earnings and profits account. The corporation distributes $10,755 to Chaz.
A. How do Chaz and the corporation treat the $10,755 distribution?
B. Assume instead that Chaz transfers to the corporation cash of $71,700 for stock and cash of $71,700 for a note of the same amount. The note is payable in equal annual installments of $7,170 and bears interest at the rate of 6%. No distributions are made during the year to Chaz. However, at the end of the year, the corporation pays an amount to meet the loan obligation(i.e., the annual $7,170 principal payment plus the interest due). Determine the total amount of the payment and its tax treatment to Chaz and the corporation.
The corporate payment to Chaz totals $_____. Chaz has interest of $______ and a note repayment of $____ of which $____is taxable to Chaz. The corporation has a deduction of $____$ of which $ is taxable to Chaz. The corporation has a deduction of $.

A landowner has just acquired 370 acres of new land, and is using the Cost-Benefit Principle to decide between three alternative uses for the land: growing corn, growing soybeans, or renting it to a local farmer. If corn is planted, the landowner expects to earn $980 per acre, while soybeans pay only $575 per acre. Renting the land earns the landowner $400 per acre. In addition, the cost of growing and harvesting corn is estimated to be $203,500, while only $88,800 for soybeans. We can assume there are no costs associated with renting the land.

Required:
a. For this landowner, the opportunity, or implicit cost of growing corn is $___________ from____________
b. The opportunity, or implicit cost of growing soybeans is $___________ from ___________
c. The landowner maximizes economic surplus by ____________

During the spring and summer of 2014, Edward and Geneva Irvine received numerous "hang-up" phone calls, including three calls in the middle of the night. With the help of their local phone company, the Irvine’s learned that many of the calls were from the telemarketing department of the Akron Beacon Journal in Akron, Ohio. The Beacon’s sales force was equipped with an automatic dialing machine. During business hours, the dialer was used to maximize productivity by calling multiple phone numbers at once and connecting a call to a sales representative only after it was answered. After business hours, the Beacon programmed its dialer to dial a list of disconnected numbers to determine whether they had been reconnected. If the dialer detected a ring, it recorded the information and dropped the call. However, if the automated dialing system crashed, which happened frequently, it redialed the entire list all over again. The Irvine’s filed a suit in an Ohio state court against the Beacon, alleging, among other things, an invasion of privacy.

Required:
In whose favor should the court rule, and why?

A firm that has recently experienced an enormous growth rate is seeking to lease a small plant in Memphis, TN; Biloxi, MS; or Birmingham, AL. Prepare an economic analysis of the three locations given the following information:
Annual costs for building, equipment, and administration would be $45,200 for Memphis, $60,000 for Biloxi, and $100,000 for Birmingham. Labor and materials are expected to be $8 per unit in Memphis, $4 per unit in Biloxi, and $5 per unit in Birmingham. The Memphis location would increase system transportation costs by $50,000 per year, the Biloxi location by $60,000 per year, and the Birmingham location by $27,800 per year. Expected annual volume is 17,800 units.

During September 20Y2, Lisa managed the tennis courts and entered into the following transactions:

9/1 Opened a business account by contributing $950.
9/1 Paid $300 for tennis supplies (practice tennis balls, etc.).
9/1 Paid $275 for the rental of video equipment to be used in offering lessons during September.
9/1 Arranged for the rental of two ball machines during September for $250. Paid $100 in advance, with the remaining $150 to be paid October 1.
9/30 Received $1,750 for lessons given during September.
9/30 Received $600 in fees from the use of the ball machines during September.
9/30 Paid $800 for salaries of part-time employees who answered the telephone and took reservations while Lisa was giving lessons.
9/30 Paid $290 for miscellaneous expenses.
9/30 Received $1,300 (325 per week) from the club for managing the tennis courts during September.
9/30 Determined that the cost of supplies on hand at the end of the month totaled $180; therefore, the cost of supplies used was $120.
9/30 Withdrew $400 (similar to Dividend) for personal use on September 30.

Journalize entries for above transactions.

You have a co-worker at work that you are also friends with. One day, a borrower comes in and meets with him. You overhear the borrower tell your co-worker that he has a loan with his mom and dad for about $10,000 that he pays $300 a month. Your co-worker proceeds as if he didn’t hear your borrower at all. Once he has taken the application, he tells the borrower that he qualifies for maximum financing for a $250,000 home. However, that does NOT take into consideration the $300 a month the borrower pays his parents for the loan.
Did your coworker do anything unethical in this transaction?
Assuming you feel this was an unethical situation, how do you handle this? Remember, this is your friend and co-worker

On March 1, 2021, Stratford Lighting issued 10% bonds, dated March 1, with a face amount of $690,000. The bonds sold for $678,000 and mature on February 28, 2041 (20 years). Interest is paid semiannually on August 31 and February 28. Stratford uses the straight-line method and its fiscal year ends December 31.

Required:
Prepare the journal entries to record the issuance of the bonds by Stratford Lighting on March 1, 2021, interest on August 31, 2021, accrued interest on December 31, 2021 and interest on February 28, 2022.

What businesses have the biggest contribution to socioeconomic development of the philippines

Considering all of the factors listed in the preceding SWOT analysis question, which of the following strategies would make the most sense for the Cubs in the upcoming season? A. Assume that as the players age, they will continue to produce at their current levels. B. Keep the Cubs intact and do not hire any new players because the team was good enough to win the World Series. C. Sign a free-agent outfielder to bolster the current roster and sign the current pitchers to long-term contracts. D. Trade the Cubs’ current pitchers to another team for minor-league prospects who aren’t ready for the major league.

Selzik Company makes super-premium cake mixes that go through two processing departments, Blending and Packaging. The following activity was recorded in the Blending Department during July:

Production data:

Units in process, July 1 (materials 100% complete; conversion 30% complete) 10,000
Units started into production 170,000
Units in process, July 31 (materials 100% complete; conversion 40% complete) 20,000
Cost data:
Work in process inventory, July 1:
Materials cost $8,500
Conversion cost $4,900
Cost added during the month:
Materials cost $139,400
Conversion cost $244,200

All materials are added at the beginning of work in the Blending Department. The company uses the FIFO method in its process costing system.

Required:
a. Determine the equivalent units for July for the Blending Department.
b. Compute the costs per equivalent unit for July for the Blending Department.
c. Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process for the Blending Department in July.
d. Prepare a cost reconciliation report for the Blending Department for July.

Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement: Sales $ 1,556,000 Variable expenses 591,640 Contribution margin 964,360 Fixed expenses 1,061,000 Net operating income (loss) $ (96,640) In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingly, the Accounting Department has developed the following information: Division East Central West Sales $ 386,000 $ 600,000 $ 570,000 Variable expenses as a percentage of sales 44 % 38 % 34 % Traceable fixed expenses $ 297,000 $ 331,000 $ 208,000 Required: 1. Prepare a contribution format income statement segmented by divisions. 2-a. The Marketing Department has proposed increasing the West Division's monthly advertising by $27,000 based on the belief that it would increase that division's sales by 17%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented

The following information is taken from the accounts of Latta Company. The entries in the T-accounts are summaries of the transactions that affected those accounts during the year.
Manufacturing Overhead
(a) 488,448 (b) 407,040
Bal. 81,408
Work in Process
Bal. 9,960 (c) 758,000
302,000
91,000
(b) 407,040
Bal. 52,000
Finished Goods
Bal. 38,000 (d) 664,000
(c) 758,000
Bal. 132,000
Cost of Goods Sold
(d) 664,000
The overhead that had been applied to production during the year is distributed among Work in Process, Finished Goods, and Cost of Goods Sold as of the end of the year as follows:
Work in Process, ending $ 24,960
Finished Goods, ending 63,360
Cost of Goods Sold 318,720
Overhead applied $ 407,040
For example, of the $52,000 ending balance in work in process, $24,960 was overhead that had been applied during the year.
Required:
1. Identify reasons for entries (a) through (d).
2. Assume that the underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare the necessary journal entry.
3. Assume that the underapplied or overapplied overhead is closed proportionally to Work in Process, Finished Goods, and Cost of Goods Sold.
Prepare the necessary journal entry.

Why is investing in gold beneficial?
A. It is easy to mine.
B. It is considered a stable investment
C. Gold is more expensive than stocks.
D. The value of hold is subject to inflation.

A company has two classes of stock authorized: 9%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during Year 1, its first year of operations:______.
January 2 Issues 100,000 shares of common stock for $29 per share.
February 6 Issues 2,400 shares of 9% preferred stock for $11 per share.
September 10 Purchases 11,000 shares of its own common stock for $34 per share.
December 15 Resells 5,500 shares of treasury stock at $39 per share.
In its first year of operations, the company has net income of $154,000 and pays dividends at the end of the year of $94,500 ($1 per share) on all common shares outstanding and $2,160 on all preferred shares outstanding. Required:
Prepare the stockholders' equity section of the balance sheet for the company as of December 31, Year 1.