FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Concept explainers

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Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
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Trial Balance and Final Accounts
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Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial repor…
Question

JOURNAL ENTRY

 

The following transaction were completed during February ,2012: 1. Direct materials purchased P 280,000. 2. The factory payroll showed P 160,000 for direct labor and P 36,000 for indirect labor. Office payroll for sales salaries were P 60,000 and for administrative salaries, P 42,000. Emplioyee's deductions for income tax are 2%, Pag -ibig ,1.5%, P1,000 and SSS ,P2,000. 3. Indirect materiais and supplies amounted to P 60,000 were purchased. 4. Employer's contributions were SSS 3% ; Philealth 1.5%; Pag-ibig 2% 5. Analysis of materials requisition: Philhealth Production order P 120,000 Standing orders 30,000 9,000 Selling supplies Office supplies 2,000 6. Defective selling supplies returned to vendor, P 1,200. 7. Vouchers totaling P220,000, including payroll voucher were paid. 8. Depreciation at a rate of 1% of the original machinery cost of P 100,000 was recorded. 9. Various factories overhead of P 15,000 were vouched. 10. Factory overhead was applied to production at rate of 70% of direct labor cost. 11. Goods completed with materials cost of P 110,000; labor cost of P 98,000 and factory overhead cost of P 68,600 were transferred to finish the goods. 12. Sales for the month were P 400,000, costing P250,000. 13. At the end of February, the factory overhead accounts are closed, the over/ under applied balance closed to Cost of sales account. EQUIRED Prepare journal entries to record the above transaction , showing all necessary computations.
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Transcribed Image Text:The following transaction were completed during February ,2012: 1. Direct materials purchased P 280,000. 2. The factory payroll showed P 160,000 for direct labor and P 36,000 for indirect labor. Office payroll for sales salaries were P 60,000 and for administrative salaries, P 42,000. Emplioyee's deductions for income tax are 2%, Pag -ibig ,1.5%, P1,000 and SSS ,P2,000. 3. Indirect materiais and supplies amounted to P 60,000 were purchased. 4. Employer's contributions were SSS 3% ; Philealth 1.5%; Pag-ibig 2% 5. Analysis of materials requisition: Philhealth Production order P 120,000 Standing orders 30,000 9,000 Selling supplies Office supplies 2,000 6. Defective selling supplies returned to vendor, P 1,200. 7. Vouchers totaling P220,000, including payroll voucher were paid. 8. Depreciation at a rate of 1% of the original machinery cost of P 100,000 was recorded. 9. Various factories overhead of P 15,000 were vouched. 10. Factory overhead was applied to production at rate of 70% of direct labor cost. 11. Goods completed with materials cost of P 110,000; labor cost of P 98,000 and factory overhead cost of P 68,600 were transferred to finish the goods. 12. Sales for the month were P 400,000, costing P250,000. 13. At the end of February, the factory overhead accounts are closed, the over/ under applied balance closed to Cost of sales account. EQUIRED Prepare journal entries to record the above transaction , showing all necessary computations.
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