Journal entries for the accounting profession. 1/4 of the examination thus consists of the preparation of journal entries super convenient to know these by heart!
Answer: accounts receivable at year end/average days' sales
8.
Inventory Turnover
Answer: COGS/Average inventories
9.
Days' sales in inventory
Answer: inventory at year end/average days' cost of goods sold
10.
Plant and equipment turnover
Answer: sales/average plant and equipment
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Verkoop van producten:
Cash (of Accounts Receivable) xx
Sales xx
Cost of Goods Sold xx
Inventory xx
Balance Sheet Income Statement
Assets = Liabilities + Owner’s Equity Net Income = Revenues + Expenses
+ Cash, of + Sales
accounts
receivable
-Inventory -COGS
Estimation cash discount:
Cash discounts on sales xx
Allowance for cash discounts xx
When actual cash discount is taken:
Allowance for cash discounts
Accounts Receivable
Depreciation & amortization expense
Depreciation Expense xx
Accumulated Depreciation xx
Amortization Expense xx
Intangible Asset xx
Balance Sheet Income Statement
Assets = Liabilities + Owner’s Equity Net Income = Revenues + Expenses
- Accumulated - Depreciation
Depreciation Expense
- Intangible Asset - Amortization
Expense
Use of direct labor in the production with efficiency variances
Work-in-Process xx
Direct labor rate variances xx
Wages payable xx
Efficiency variances on direct labor xx
To record actual variable overhead costs
Variable manufacturing overhead incurred xx
Accounts payable (and/or cash) xx
To record the application of variable manufacturing overhead to products
Work-in-Process xx
Variable manufacturing overhead applied xx
To isolate variable overhead variances for the period
Variable manufacturing overhead applied xx
Spending variance on variable manufacturing overhead xx
Variable manufacturing overhead incurred xx
Efficiency variance on variable manufacturing overhead xx
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