Font Analysis course ofrostane dedngofalljoanal amapoor to prepaing year nd repo
ID: 2518230 • Letter: F
Question
Font Analysis course ofrostane dedngofalljoanal amapoor to prepaing year nd reports Beny Eller dacovered several trange entries She recalled that president?Joe badcoue intobelp out durísgan In bay tme snd that he had recorded some journal ene. She was relievedhatthere wee only stwofhis eatries.nd even more relieved th=hehad icided tither lenghy explanation. The entries Joe made wese 25,000 Casb w ng Overheodt?ve (Tha "for bonus" paid to salespeople. I know dey'se put ofove head, and t can't find an account called Na the check stubs, so 1 knowr we paid these.) Factory Ormhend. or Oher Overhead" so I'm putang t m Manaf Wages Expense 120,000 for the wages and the taxes) leventory 3,000 dough we dida't use very anach on any car of the products. 1 got it out of inventory, so I credined an isvestery acceunt) Materials Inventory (a) How shoald Joe bave iecoeded each of the four events tb) If the eatry was ol corrected, which finasoal satemests (ncome statensent or balance sheet) would be affected? What balances would be ovcerstated or understened NOTESCOMMENTSExplanation / Answer
1.Journal Entry S. No. Account Titles and explanation Debit Credit Work in Progess Inventory $25,000.00 Cash $25,000.00 Corrected Entry Work in Progess Inventory $25,000.00 Raw Material inventory $25,000.00 To Record Assign material to job. balancesheet will be affected and Raw Material balance will be understated 2.Journal Entry S. No. Account Titles and explanation Debit Credit Manufacturing Overhead $12,000.00 Cash $12,000.00 Corrected Entry Bonus Expense to Sales Department $12,000.00 Cash $12,000.00 To Record Bonus expense to Sale people Income Statement will be affected and Cost of Production will be overstated 3.Journal Entry S. No. Account Titles and explanation Debit Credit Wages Expense $120,000.00 Cash $120,000.00 Corrected Entry Work in Process Inventory $120,000.00 Factory labour $120,000.00 To record Assign labour cost to job Factory Labour $120,000.00 Factory Wages payable $102,000.00 Employer Payroll Tax Payble $18,000.00 ( To record Factory Labour Cost) Balance sheet will be affected and Payable account will be understated. 4.Journal Entry S. No. Account Titles and explanation Debit Credit Work in Process Inventory $3,000.00 Raw Material Inventory $3,000.00 Corrected Entry Manufacturing overhead $3,000.00 Cash $3,000.00 To record Assign manufacturing Overhead glue used in the factory