Question

Clemens Cars' job cost sheet for job A40 shows that the cost to add security features to a car was $10,500. The car was delivered to the customer, who paid $14,900 in cash for the added features. What journal entries should Clemens record for the completion and delivery of job A40?

Journal entry worksheet 2 3 Record transfer of cost of completed job to Finished Goods. Note: Enter debits before credits. Transaction Credit Debit 10,500 General Journal Finished goods inventory Work in process inventory Cost of goods sold Finished goods inventory 10,500 10,500 10,500 Record entry Clear entry View general journal

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Answer 1

The journal entries are recorded based on accounting rules in which all expenses, assets, losses are debited for increase and revenue, liabilities, equity, gain are credited for increase
The journal entries are shown below
Transaction	General Journal	Debit	Credit
1	Finished goods inventory	$10,500
	Work in process inventory		$10,500
	(To record cost of completed jobs to FG)
2	Cost of goods sold	$10,500
	Finished goods inventory		$10,500
	(To record cost of goods sold)
3	Cash	$14,900
	Sales revenue		$14,900
	(To record sale price of job)