Business
Crawford Corporation incurred the following transactions.1. Purchased raw materials on account $53,800. 2. Raw Materials of $36,500 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $8,500 was classified as indirect materials.3. Factory labor costs incurred were $61,900, of which $50,000 pertained to factory wages payable and $11,900 pertained to employer payroll taxes payable.4. Time tickets indicated that $54,900 was direct labor and $7,000 was indirect labor. 5. Manufacturing overhead costs incurred on account were $82,300. 6. Depreciation on the company's office building was $9,000. 7. Manufacturing overhead was applied at the rate of 160% of direct labor cost. 8. Goods costing $96,600 were completed and transferred to finished goods. 9. Finished goods costing $79,400 to manufacture were sold on account for $106,800. Required:Journalize the transactions.
JANES EVALUATIONPaul Medwick is a commercial banker. In the past month, he has received loan applications from three entrepreneurs. All three have fledgling businesses with strong potential. However, Paul believes it is important to look at more than just the business itself; the individual also needs close scrutiny. The three entrepreneurs are (1) Robin Wood, owner of a small delicatessen located in the heart of a thriving business district; (2) Richard Trumpe, owner of a ten-minute oilchange-and-lube operation; and (3) Phil Hartack, owner of a bookstore that specializes in best sellers and cookbooks. Paul has had the banks outside consultant, Professor Jane Jackson, interview each of the three entrepreneurs. Jane has done a lot of work with entrepreneurs andafter a couple hours of discussionusually can evaluate a persons entrepreneurial qualities. In the past, Jane has recommended 87 people for loans, and only two of these ventures have failed. This success rate is much higher than that for commercial loans in general. Following is Janes evaluation of the three people she interviewed.Characteristic Robin Wood Richard Trumpe Phil HartackPerseverance H M MDrive to achieve M H MInitiative M H MPersistent problem-solving M M HTolerance for ambiguity L M HIntegrity and reliability H M HTolerance for failure H H HCreativity and innovativeness M H MSelf-confidence H H HIndependence H H HH = High; M = Medium; L = Low.1. Which of the three applicants do you think comes closest to having the mind-set of an ideal entrepreneur? Why?2. To which applicant would you recommend that the bank lend money? (Assume that each has asked for a loan of $150,000).3. Can these three entrepreneurs do anything to improve their entrepreneurial profile and their chances for success?
Which of the following correctly describes a general ledger?Group of answer choicesAn index of all the financial accounts reported in the financial statementsA summary record of each separate asset, liability, owners' equity, revenue, expense, and dividend accounts.A listing of all asset, liability, owners' equity, revenue, expense, and dividend accounts sorted according to its debit or credit balance.The side-by-side presentation of the Balance Sheet, Income Statement, and Statement of Retained Earnings.
Nature of Transactions Kristoff Walker operates his own catering service. Summary financial data for February are presented in equation form as follows. Each line designated by a number indicates the effect of a transaction on the equation. Each increase and decrease in owner's equity, except transaction (5), affects net income.Assets = Liabilities + Owner's Equity - Kristoff Walker, Cash + Supplies + Land = Accounts + Kristoff Walker, Drawing Payable CapitalBal. 27,600 3,600 69,000 7,500 92,7001. +32,300 +32,300 2. -13,800 +13,800 3. -24,000 -24,0004. +1,400 +1,400 5. -1,800 -1,800 6. -6,600 -6,600 7. -2,800 -2,800Bal. 13,700 2,200 82,800 2,300 92,700 -1,800Fill in the blank options for questions of a:-Recognition of cost of supplies used-Withdrawal of cash by owner-Purchase of supplies on account-Purchase of land for cash-Payment of cash to creditors-Payment of cash for expenses-Provided catering service for cashA. Select the description for transaction 1 Select the description for transaction 2 Select the description for transaction 3 Select the description for transaction 4 Select the description for transaction 5 Select the description for transaction 6 Select the description for transaction 7B. What is the amount of the net decrease in cash during the month?C. What is the amount of the net increase in owner's equity during the month?D. What is the amount of the net income for the month?E. How much of the net income for the month was retained in the business?
Based on the Information that follows, prepare the cost of goods sold section of a multiple-step income statement.Merchandise Inventory, January 1, 20-- $37,000 Estimated Returns Inventory, January 1, 20-- 1,000 Purchases 102,000 Purchases Returns and Allowances 4,200 Purchases Discounts 2,040 Freight-In 800 Merchandise Inventory, December 31, 20-- 28,500 Estimated Returns Inventory, December 31, 20-- 3,500
