Transaction and Adjustment Data for Portiski Company for the Year

question 76

Essay

Transaction and adjustment data for Portiski Company for the year ended September 30 is as follows:
1. September 24 (initial salary entry): $12,000 of salaries earned between September 1 and September 24 are paid.
2. September 30 (adjusting entry): Salaries earned between September 25 and September 30 are $5,000. These will be paid in the October 8 payroll.
3. October 8 (subsequent salary entry): Total salary payroll amounting to $9,000 was paid.
Instructions
Prepare two sets of journal entries as specified below. The first set of journal entries should assume that the company does not use reversing entries, and the second set should assume that reversing entries are utilized by the company.

Evaluate performance through variance analysis including spending, activity, and overall variances.

Understand the impact of activity levels on budgeted and actual costs and incomes.

Interpret and solve for net operating income under different scenarios.

Grasp the impact of cost behavior on budgeting and performance evaluation.

---

Definitions:

Critical Needs

Essential requirements or factors that must be addressed or fulfilled to ensure the success or survival of a project, initiative, or business operation.

Probes

Questions or statements designed to gather more information, clarify understanding, or uncover needs and preferences during a conversation or sales process.

Two-Way Communication

A form of communication where information flows back and forth between two parties, allowing for feedback and interaction.

Customer Benefit Approach

The customer benefit approach focuses on presenting how a product or service can solve a customer's problem or improve their situation.