From the adjusting entries below, prepare the reversing entry(ies) that would be needed for January 1. GENERAL JOURNALPage 1 DateDescriptionPostRef. DebitCreditAdjusting EntriesDec.31Work in Process Inventory17,333.00Factory Overhead17,333.0031Interest Receivable2,367.00Interest Revenue2,367.0031Office Supplies Expense6,319.00Office Supplies6,319.0031Factory Overhead15,841.00Factory Supplies15,841.0031Bad Debt Expense4,320.00Allowance for Bad Debts4,320.0031Factory Overhead1,927.00Prepaid Insurance1,927.0031Factory Overhead6,210.00Accumulated Depreciation—FactoryBuilding6,210.0031Factory Overhead14,253.00Accumulated Depreciation—FactoryEquipment14,253.00
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
From the
GENERAL JOURNAL
Page 1
Date
Description
Post
Ref.
Debit
Credit
Adjusting Entries
Dec.
31
Work in Process Inventory
17,333.00
Factory Overhead
17,333.00
31
Interest Receivable
2,367.00
Interest Revenue
2,367.00
31
Office Supplies Expense
6,319.00
Office Supplies
6,319.00
31
Factory Overhead
15,841.00
Factory Supplies
15,841.00
31
Bad Debt Expense
4,320.00
Allowance for
4,320.00
31
Factory Overhead
1,927.00
Prepaid Insurance
1,927.00
31
Factory Overhead
6,210.00
Building
6,210.00
31
Factory Overhead
14,253.00
Accumulated Depreciation—Factory
Equipment
14,253.00
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