Homework Answers
Entry No.1
12/15/2017 - No Entry required
Entry No.2
12/15/2017 - No Entry required
Entry No.3
12/31/2017 - No Entry required
Entry No.4
Option Expenses ..... Dr. 185.00
To Option Premium Cr... 185.00
(proportionate option premium debited for the period from12/15/2017 to 12/31/2017
Entry No 5
03/15/2018
Supplier A/c Dr.. 10,000
To Foreign Currency Option - 10,000
(Being foreign Exchange gain on 1,000,000 @ $0.01)
Entry No. 6
Foreign currency Option Dr.. 10,000
To AOCI .. 10,000
Entry No. 7
Purchase A/c Dr. 600,000
To Supplier A/c 600,000
(Being Material Purchased)
Entry No 8.
Supplier A/c Dr. 600,000
To Marks .... 590,000
To Foreign Currency Option 10,000
(Transfer to Marks)
Entry No.9
AOCI ...Dr. 10,000
To Gain on Option ... 10,000
(Being Gain on Option Contract)
Part B
Net Income in 2017 - (-)185.00
Net Income in 2018 - 9185.00 (Option Income less premium)
Part C.
Payment to Supplier - 590,000
Option Premium 1,000
Total 591,000.
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Based on past experience, Leickner Company expects to purchase raw materials from a foreign supplier at...
Brandlin Company of Anaheim, California, sells parts to a foreign customer on December 1, 2017, with...
Brandlin Company of Anaheim, California, sells parts to a foreign customer on December 1, 2017, with payment of 31,000 korunas to be received on March 1, 2018. Brandlin enters into a forward contract on December 1, 2017, to sell 31,000 korunas on March 1, 2018. Relevant exchange rates for the koruna on various dates are as follows: Date December 1, 2017 December 31, 2017 March 1, 2018 Forward Rate Spot Rate (to March 1, 2018) $ 4.90 $4.975 5.00 5.100...
Based on past experience, Leickner Company expects to purchase raw materials from a foreign supplier at...
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1. Prepare entries dated June 30 to record: (a) raw materials purchases, (b) direct materials usage(c)...
1.
Prepare entries dated June 30 to record: (a) raw materials
purchases, (b) direct materials usage(c) Indirect materials usage
d) direct labor usage, ) labor usageoverhead costs, () overhead
applied, and () payment of total payroll costs.
Required information [The following information applies to the questions displayed below.) Pro-Weave manufactures stadium blankets by passing the products through a weaving department and a sewing department. The following information is available regarding its June inventories: Raw materials inventory Work in process inventory-Weaving...
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Starr Company reports the following information for August. Raw materials purchased on account $76,200 Direct materials...
Starr Company reports the following information for
August.
Raw materials purchased on account $76,200
Direct materials used in production $48,000
Factory wages earned (direct labor) $15,350
Overhead rate 120 % of direct labor cost
Prepare journal entries to record the following events.
1. Raw materials purchased.
2. Direct materials used in production.
3. Direct labor used in production.
4. Applied overhead.
View transaction list Journal entry worksheet < ( 1 ) 2 3 4 Record raw materials purchased on account....
The following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics International...
The following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics International during 2018 and 2019. The company uses straight-line depreciation for trucks and other vehicles, double-declining balance depreciation for buildings, and straight-line amortization for patents. 2018 January 2 Paid $100,000 cash to purchase storage shed components. January 3 Paid $5,000 cash to have the storage shed erected. The storage shed has an estimated life of 10 years and a residual value of $8,000. April 1...
The Polaris Company uses a job-order costing system. The following transactions occurred in October: a. Raw...
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Listed below are the transactions that affected the shareholders' equity of Branch-Rickie Corporation during the period...
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Prepare summary journal entries to record the following
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WA E- Www Check my Www Prepare summary journal entries to record the following transactions for a company in its first month of operations. This page ware Si a. Raw materials purchased on account, $84,000. b. Direct materials used in production, $38,000. Indirect materials used in production, $13,500. c. Paid cash for factory payroll, $45,000. Of this total, $31,000 is for direct...
Brandlin Company of Anaheim, California, sells parts to a foreign customer on December 1, 2017, with payment of 31,000 korunas to be received on March 1, 2018. Brandlin enters into a forward contract on December 1, 2017, to sell 31,000 korunas on March 1, 2018. Relevant exchange rates for the koruna on various dates are as follows: Date December 1, 2017 December 31, 2017 March 1, 2018 Forward Rate Spot Rate (to March 1, 2018) $ 4.90 $4.975 5.00 5.100...
Based on past experience, Leickner Company expects to purchase raw materials from a foreign supplier at a cost of 1,200,000 marks on March 15, 2018. To hedge this forecasted transaction, the company acquires a three-month call option to purchase 1,200,000 marks on December 15, 2017. Leickner selects a strike price of $0.82 per mark, paying a premium of $0.001 per unit, when the spot rate is $0.82. The spot rate increases to $0.827 at December 31, 2017, causing the fair...
On April 1, 2017, Mendoza Company borrowed 514.000 euros for one year at an interest rate of 5 percent per annum. Mendoza must make its first interest payment on the loan on October 1, 2017 and will make a second interest payment on March 31, 2018 when the loan is repaid. Mendoza prepares U.S.-dollar financial statements and has a December 31 year-end. Prepare all journal entries related to this foreign currency borrowing assuming the following exchange rates for 1 euro...
1.
Prepare entries dated June 30 to record: (a) raw materials
purchases, (b) direct materials usage(c) Indirect materials usage
d) direct labor usage, ) labor usageoverhead costs, () overhead
applied, and () payment of total payroll costs.
Required information [The following information applies to the questions displayed below.) Pro-Weave manufactures stadium blankets by passing the products through a weaving department and a sewing department. The following information is available regarding its June inventories: Raw materials inventory Work in process inventory-Weaving...
On December 15, 2017, Lisbeth Inc. (a U.S. company purchases merchandise inventory from a foreign supplier for 50,000 schillings. Lisbeth agrees to pay in 45 days after it sells the merchandise. Lisbeth makes sales rather quickly and pays the entire obligation on January 25, 2018. Currency exchange rates for 1 schilling are as follows: 0.30 December 15, 2017 December 31, 2017 917 January 25, 2018 January 31, 2018 Prepare all journal entries for Lisbeth Company in connection with this purchase...
Starr Company reports the following information for
August.
Raw materials purchased on account $76,200
Direct materials used in production $48,000
Factory wages earned (direct labor) $15,350
Overhead rate 120 % of direct labor cost
Prepare journal entries to record the following events.
1. Raw materials purchased.
2. Direct materials used in production.
3. Direct labor used in production.
4. Applied overhead.
View transaction list Journal entry worksheet < ( 1 ) 2 3 4 Record raw materials purchased on account....
The following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics International during 2018 and 2019. The company uses straight-line depreciation for trucks and other vehicles, double-declining balance depreciation for buildings, and straight-line amortization for patents. 2018 January 2 Paid $100,000 cash to purchase storage shed components. January 3 Paid $5,000 cash to have the storage shed erected. The storage shed has an estimated life of 10 years and a residual value of $8,000. April 1...
The Polaris Company uses a job-order costing system. The following transactions occurred in October: a. Raw materials purchased on account, $211,000. b. Raw materials used in production, $191,000 ($152,800 direct materials and $38,200 indirect materials). C. Accrued direct labor cost of $48,000 and indirect labor cost of $20,000. d. Depreciation recorded on factory equipment, $105,000. e. Other manufacturing overhead costs accrued during October, $129,000. f. The company applies manufacturing overhead cost to production using a predetermined rate of $9 per...
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Prepare summary journal entries to record the following
transactions for a company in its first month of operations
WA E- Www Check my Www Prepare summary journal entries to record the following transactions for a company in its first month of operations. This page ware Si a. Raw materials purchased on account, $84,000. b. Direct materials used in production, $38,000. Indirect materials used in production, $13,500. c. Paid cash for factory payroll, $45,000. Of this total, $31,000 is for direct...
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