Vaughn Corporation is analyzing its account balances for 2020. As of the end of 2020, a...
Vaughn Corporation is analyzing its account balances for 2020. As of the end of 2020, a debit balance of $3900 remains in the Manufacturing Overhead account. What impact will this have on the financial statements?
|
It will increase assets by $3900 and have no effect on income. |
|
It will increase income by $3900. |
|
It will reduce income by $3900. |
|
It will decrease gross profit but have no effect on income. |
Homework Answers
| Option C is the answer | |
|
Debit balance in manufacturing overhead account indicates that the overhead applied to the job was underapplied. Comment if you face any issues. Thank you |
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Vaughn Corporation is analyzing its account balances for 2020.
As of the end of 2020, a...
Concord Corporation is analyzing its account balances for 2020. As of the end of 2020, a debit balance of $4700 remains...
Concord Corporation is analyzing its account balances for 2020. As of the end of 2020, a debit balance of $4700 remains in the Manufacturing Overhead account. What impact will this have on the financial statements? It will increase assets by $4700 and have no effect on income. It will increase income by $4700. It will reduce income by $4700. It will decrease gross profit but have no effect on income.
Can you please explain this??? Concord Corporation is analyzing its account balances for 2020. As of...
Can you please explain this???
Concord Corporation is analyzing its account balances for 2020. As of the end of 2020, a debit balance of $3300 remains in the Manufacturing Overhead account. What impact will this have on the financial statements? O It will increase assets by $3300 and have no effect on income. O It will increase income by $3300. O It will reduce income by $3300. 0 It will decrease gross profit but have no effect on income.
Vaughn Corporation, in preparation of its December 31, 2020, financial statements, is attempting to determine the...
Vaughn Corporation, in preparation of its December 31, 2020,
financial statements, is attempting to determine the proper
accounting treatment for each of the following
situations.
1.
As a result of uninsured accidents during the year, personal
injury suits for $334,300 and $63,400 have been filed against the
company. It is the judgment of Vaughn’s legal counsel that an
unfavorable outcome is unlikely in the $63,400 case but that an
unfavorable verdict approximating $275,000 will probably result in
the $334,300 case....
*Exercise 5-12 Presented below is the trial balance of Vaughn Corporation at December 31, 2020. Credit...
*Exercise 5-12 Presented below is the trial balance of Vaughn Corporation at December 31, 2020. Credit Debit $ 201,970 $ 8,104,060 $ 157,060 4,800,000 303,970 281,970 94,060 459,060 2,004,060 66,860 264,060 1,044,970 140,970 100,060 439,060 Cash Sales Debt Investments (trading) (at cost, $145,000) Cost of Goods Sold Debt Investments (long-term) Equity Investments (long-term) Notes Payable (short-term) Accounts Payable Selling Expenses Investment Revenue Land Buildings Dividends Payable Accrued Liabilities Accounts Receivable Accumulated Depreciation-Buildings Allowance for Doubtful Accounts Administrative Expenses Interest Expense...
3. Kyle Corporation had the following account balances at the end of this year Direct materials...
3. Kyle Corporation had the following account balances at the end of this year Direct materials inventory Work in process Finished goods Manufacturing overhead control Cost of goods sold $ 2,000 1,400 900 123 credit 1,020 a. Assuming that over- or underapplied overhead is written off to cost of goods sold, prepare the appropriate journal entry. (If no entry is required for a particular transaction, select "No journal entry required in the first account field.) View transaction list Journal entry...
Accounting Cycle Review 6 a- f On December 1, 2020, Vaughn Company had the account balances...
Accounting Cycle Review 6 a- f On December 1, 2020, Vaughn Company had the account balances shown below. Debit Cash $5,000 Accounts Receivable 4,400 Inventory 1,920 Equipment 21,000 Debit Total $32,320 Credit Accumulated Depreciation—Equipment $1,200 Accounts Payable 3,800 * Owner’s Capital 27,320 Credit Total $32,320 *(3,200 x $0.60) The following transactions occurred during December: Dec. 3 Purchased 5,200 units of inventory on account at a cost of $0.74 per unit. 5 Sold 5,500 units of inventory on account for $0.90...
Question 5 The following account balances were included in the trial balance of Vaughn Corporation at...
Question 5 The following account balances were included in the trial balance of Vaughn Corporation at June 30, 2017. Sales revenue Sales discounts Cost of goods sold Salaries and wages expense (sales) Sales commissions Travel expense (salespersons) Delivery expense Entertainment expense Telephone and Intenet expense (sales) Depreciation expense (sales equipment) Maintenance and repairs expense (sales) Miscellaneous selling expenses Office supplies used Telephone and Internet expense (administration) $1,595,870 Depreciation expense (office furniture and equipment) 3,040Property tax expense 897,600 Bad debt expense...
Adjustments Kretz Corporation prepares monthly financial statements and therefore adjusts its accounts at the end of...
Adjustments Kretz Corporation prepares monthly financial statements and therefore adjusts its accounts at the end of every month. The following information is available for March 2017: Required: 1. For each of the following situations, identify and analyze the adjustments to be recorded on March 31, 2017. Do not round intermediate calculations. If required, round your final answers to the nearest dollar. a. Kretz Corporation takes out a 90-day, 8%, $15,000 note on March 1, 2017, with interest and principal to...
Vaughn Inc., in its first year of operations, has the following differences between the book basis...
Vaughn Inc., in its first year of operations, has the following
differences between the book basis and tax basis of its assets and
liabilities at the end of 2019.
Book Basis
Tax Basis
Equipment (net)
$413,000
$356,900
Estimated warranty liability
$198,000
$-0-
It is estimated that the warranty liability will be settled in
2020. The difference in equipment (net) will result in taxable
amounts of $18,200 in 2020, $28,400 in 2021, and $9,500 in 2022.
The company has taxable income...
Vaughn Corporation is preparing the comparative financial statements for the annual report to its shareholders for...
Vaughn Corporation is preparing the comparative financial
statements for the annual report to its shareholders for fiscal
years ended May 31, 2020, and May 31, 2021. The income from
operations for the fiscal year ended May 31, 2020, was $1,819,000
and income from continuing operations for the fiscal year ended May
31, 2021, was $2,469,000. In both years, the company incurred a 10%
interest expense on $2,394,000 of debt, an obligation that requires
interest-only payments for 5 years. The company...
Can you please explain this???
Concord Corporation is analyzing its account balances for 2020. As of the end of 2020, a debit balance of $3300 remains in the Manufacturing Overhead account. What impact will this have on the financial statements? O It will increase assets by $3300 and have no effect on income. O It will increase income by $3300. O It will reduce income by $3300. 0 It will decrease gross profit but have no effect on income.
Vaughn Corporation, in preparation of its December 31, 2020,
financial statements, is attempting to determine the proper
accounting treatment for each of the following
situations.
1.
As a result of uninsured accidents during the year, personal
injury suits for $334,300 and $63,400 have been filed against the
company. It is the judgment of Vaughn’s legal counsel that an
unfavorable outcome is unlikely in the $63,400 case but that an
unfavorable verdict approximating $275,000 will probably result in
the $334,300 case....
*Exercise 5-12 Presented below is the trial balance of Vaughn Corporation at December 31, 2020. Credit Debit $ 201,970 $ 8,104,060 $ 157,060 4,800,000 303,970 281,970 94,060 459,060 2,004,060 66,860 264,060 1,044,970 140,970 100,060 439,060 Cash Sales Debt Investments (trading) (at cost, $145,000) Cost of Goods Sold Debt Investments (long-term) Equity Investments (long-term) Notes Payable (short-term) Accounts Payable Selling Expenses Investment Revenue Land Buildings Dividends Payable Accrued Liabilities Accounts Receivable Accumulated Depreciation-Buildings Allowance for Doubtful Accounts Administrative Expenses Interest Expense...
3. Kyle Corporation had the following account balances at the end of this year Direct materials inventory Work in process Finished goods Manufacturing overhead control Cost of goods sold $ 2,000 1,400 900 123 credit 1,020 a. Assuming that over- or underapplied overhead is written off to cost of goods sold, prepare the appropriate journal entry. (If no entry is required for a particular transaction, select "No journal entry required in the first account field.) View transaction list Journal entry...
Question 5 The following account balances were included in the trial balance of Vaughn Corporation at June 30, 2017. Sales revenue Sales discounts Cost of goods sold Salaries and wages expense (sales) Sales commissions Travel expense (salespersons) Delivery expense Entertainment expense Telephone and Intenet expense (sales) Depreciation expense (sales equipment) Maintenance and repairs expense (sales) Miscellaneous selling expenses Office supplies used Telephone and Internet expense (administration) $1,595,870 Depreciation expense (office furniture and equipment) 3,040Property tax expense 897,600 Bad debt expense...
Adjustments Kretz Corporation prepares monthly financial statements and therefore adjusts its accounts at the end of every month. The following information is available for March 2017: Required: 1. For each of the following situations, identify and analyze the adjustments to be recorded on March 31, 2017. Do not round intermediate calculations. If required, round your final answers to the nearest dollar. a. Kretz Corporation takes out a 90-day, 8%, $15,000 note on March 1, 2017, with interest and principal to...
Vaughn Inc., in its first year of operations, has the following
differences between the book basis and tax basis of its assets and
liabilities at the end of 2019.
Book Basis
Tax Basis
Equipment (net)
$413,000
$356,900
Estimated warranty liability
$198,000
$-0-
It is estimated that the warranty liability will be settled in
2020. The difference in equipment (net) will result in taxable
amounts of $18,200 in 2020, $28,400 in 2021, and $9,500 in 2022.
The company has taxable income...
Vaughn Corporation is preparing the comparative financial
statements for the annual report to its shareholders for fiscal
years ended May 31, 2020, and May 31, 2021. The income from
operations for the fiscal year ended May 31, 2020, was $1,819,000
and income from continuing operations for the fiscal year ended May
31, 2021, was $2,469,000. In both years, the company incurred a 10%
interest expense on $2,394,000 of debt, an obligation that requires
interest-only payments for 5 years. The company...
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