Eminence Corporation makes rocking chairs. The chairs move through two departments during production. Lumber iscut into chair parts in the cutting department, which transfers the parts to the assembly department for completion. Thecompany sells the unfinished chairs to hobby shops. The following transactions apply to Eminence's operations for itsfirst year, Year 1. (Assume that all transactions are for cash unless otherwise stated.)1. The company was started when it acquired a $47,000 cash contribution from the owners.2. The company purchased $15,000 of direct raw materials and $400 of indirect materials. Indirect materials arecapitalized in the Production Supplies account.3. Direct materials totaling $7,000 were issued to the cutting department.4. Labor cost was $28,200. Direct labor for the cutting and assembly departments was $10,000 and $13,000,respectively. Indirect labor costs were $5,200.5. The predetermined overhead rate was $0.50 per direct labor dollar in each department.6. Actual overhead costs other than indirect materials and indirect labor were $6,400 for the year.7. The cutting department transferred $12,500 of inventory to the assembly department.8. The assembly department transferred $20,500 of inventory to finished goods.9. The company sold inventory costing $18,500 for $30,000.10. Selling and administrative expenses were $3,000.11. A physical count revealed $100 of production supplies on hand at the end of Year 1.12. Assume that over- or underapplied overhead is insignificant.Requireda. Record the data in T-accounts.b. Record the closing entry for over- or underapplied manufacturing overhead, assuming that the amount is insignificant.c. Close the revenue and expense accounts.d. Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet for Year 1.Complete this question by entering your answers in the tabs below.Req A toсEnd. bal.Record the data in T-accounts. Record the closing entry for over- or underapplied manufacturing overhead,assuming that the amount is insignificant. Close the revenue and expense accounts. (The cash expenditures inevent No. 2 should be recorded as separate amounts in the Cash account. The closing entry for revenue andexpenses should be made in one entry.)End. bal.End. bal.Reg DCGMEnd. bal.Req D Inc Req D BalStmt SheetCashRaw MaterialsManufacturing OverheadWork in process CuttingWork in process AssemblyEnd. bal.End. bal.CIEnd. bal.End. bal.Common StockRetained EarningsRevenueCost of Goods SoldCICISelling & Administrative ExpensesShow less

Name: Eminence Corporation makes rocking chairs. The chairs move through tw
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Description: Eminence Corporation makes rocking chairs. The chairs move through two departments during production. Lumber iscut into chair parts in the cutting department, which transfers the parts to the assembly department for completion. Thecompany sells the

Here asked for multi sub part question we will solve for first three sub part question for you. If…

Business

Accounting

a. Record the data in T-accounts. b. Record the closing entry for over- or underapplied manufacturing overhead, assuming that the amount is insignificant. c. Close the revenue and expense accounts. d. Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet for Year 1.

a. Record the data in T-accounts. b. Record the closing entry for over- or underapplied manufacturing overhead, assuming that the amount is insignificant. c. Close the revenue and expense accounts. d. Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet for Year 1.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 5PA: Jada Company had the following transactions during the year: Purchased a machine for $500,000 using...

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Stillwater Designs is a private company and outsources production of its Kicker speaker lines. Suppose that Stillwater Designs provided you the following transactions: a. Sold a warehouse for 750,000. b. Reported a profit of 100,000. c. Retired long-term bonds. d. Paid cash dividends of 350,000. e. Obtained a mortgage for a new building from a local bank. f. Purchased a new robotic system. g. Issued a long-term note payable. h. Purchased a 40% interest in a company. i. Reported a loss for the year. j. Negotiated a long-term loan. Required: Classify each of these transactions as an operating activity, an investing activity, or a financing activity. Also, indicate whether the activity is a source of cash or a use of cash.
Jada Company had the following transactions during the year: Purchased a machine for $500,000 using a long-term note to finance it Paid $500 for ordinary repair Purchased a patent for $45,000 cash Paid $200,000 cash for addition to an existing building Paid $60,000 for monthly salaries Paid $250 for routine maintenance on equipment Paid $10,000 for extraordinary repairs If all transactions were recorded properly, what amount did Jada capitalize for the year, and what amount did Jada expense for the year?
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