Adjusting Entries help needed Hydro Paddle Board Jan. 31 Property tax accrued fo

Question

Adjusting Entries help needed Hydro Paddle Board

Jan. 31 Property tax accrued for the month:

Factory............................................ $970

General............................................274.52

Jan. 31 Close out underapplied Factory Overhead of $2,741.38 to Cost of Goods Solds

Jan. 31 Based on past experiences, Hydro Paddle Boards, Inc. estimates that $15,800.00 is a reasonable balance for the January 31 balance in the Allowance for Doubtful Accounts.

Jan 31. Income tax is based on 40% of income before tax. Accrue income tax owed by debitting Income Tax Expense and crediting Income Tax Payable for $13,110.11

Explanation / Answer

31. Jan Factory Exp A/c Dr $970 General Exp A/c Dr $274.52 To property Tax Payable 1217.52 (Being Property tax accrued) 31. Jan Cost of Goods Sold A/c Dr $2,741.38 To Factory Overhead $2,741.38 (Being underappliedoverhead absorbed) 31. Jan Profit & Loss A/c Dr $15,800 To Provision for doubtful debt $15,800 (Being Provision made) 31. Jan Income Tax Expense A/c Dr $13,110.11 To Income Tax Payable $13,110.11

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.