Kalogrides & McMillan CPAs incurred the following costs in performing audits during September. The firm uses a Work in Process Inventory account for audit engagement costs and records overhead in fixed and variable overhead accounts. a. Prepare journal entries for each of the following transactions: Note: Where applicable, list multiple debits in alphabetical order and multiple credits in alphabetical order. 1. Used $8,000 of previously purchased supplies on audit engagements. 2. Paid $12,800 of partner travel expenses to an accounting conference. 3. Recorded $10,400 of depreciation on laptops used in audits. 4. Recorded $2,880,000 of annual depreciation on the Kalogrides & McMillan Building, located in downtown New York; 65 percent of the space is used to house audit personnel. 5. Accrued audit partner salaries, $320,000. 6. Accrued remaining audit staff salaries, $412,640. 7. Paid credit card charges for travel costs for client engagements, $31,040. 8. One month’s prepaid insurance and property taxes expired on the downtown building, $27,680. 9. Accrued audit partner salaries, $5,440 of office assistant wages; the office assistant works only for the audit partners and staff. 10. Paid all accrued salaries and wages for the month. b. Determine the cost of audit services rendered for September
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Kalogrides & McMillan CPAs incurred the following costs in performing audits during September. The firm uses a Work in Process Inventory account for audit engagement costs and records
a. Prepare journal entries for each of the following transactions:
Note: Where applicable, list multiple debits in alphabetical order and multiple credits in alphabetical order.
1. Used $8,000 of previously purchased supplies on audit engagements.
2. Paid $12,800 of partner travel expenses to an accounting conference.
3. Recorded $10,400 of
4. Recorded $2,880,000 of annual depreciation on the Kalogrides & McMillan Building, located in downtown New York; 65 percent of the space is used to house audit personnel.
5. Accrued audit partner salaries, $320,000.
6. Accrued remaining audit staff salaries, $412,640.
7. Paid credit card charges for travel costs for client engagements, $31,040.
8. One month’s prepaid insurance and property taxes expired on the downtown building, $27,680.
9. Accrued audit partner salaries, $5,440 of office assistant wages; the office assistant works only for the audit partners and staff.
10. Paid all accrued salaries and wages for the month.
b. Determine the cost of audit services rendered for September.
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