The company had the following costs during the fiscal year. Depreciation on Factory Equipment 7,000 Rent...

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The company had the following costs during the fiscal year. Depreciation on Factory Equipment 7,000 Rent...

The company had the following costs during the fiscal year.

Depreciation on Factory Equipment	7,000
Rent for Sales Office	35,000
Factory Insurance	1,300
Utilities for Factory	4,000
Depreciation on Office Computers	5,500

What is (are) the journal entry (entries) for recording the utility cost and the rent cost?

business accounting

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Answer 1

Answer #1

Solution:
	Journa entries
Date	Accounts titles and Explanation	Debit	Credit
1	Manufacturing Overhead	$4,000
	Factory Utilities Payable		$4,000
	(Being Factory utilities recorded)

2	Rent Expense	$35,000
	Rent Payable		$35,000
	(Being rent expense for sales office recorded)

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Answer 2

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