Complete the Following for Wickers Restoration Services

question 150

Essay

Complete the following for Wickers Restoration Services.(a) Record the following selected transactions for May in a two-column journal, identifying each entry by number. Explanations may be omitted.(b) Prepare T accounts for each account used and post the journal entries to these accounts, placing the appropriate number to the left of each amount to identify the transactions.(c) Prepare an unadjusted trial balance as of May 31.(d) Determine the net income for May.(e) Determine the retained earnings at the end of May, assuming this was the first month of business.(1)Received $48,000 from sale of common stock.(2)Paid rent on office for the month, $880.(3)Purchased supplies on account, $1,750.(4)Earned fees, receiving cash, $12,600.(5)Paid creditor on account, $1,000.(6)Paid automobile expenses for month, $375, and miscellaneous expenses, $250.(7)Paid office salaries for the month, $3,900.(8)Earned fees which the customer will pay next month, $2,400.(9)Determined that the cost of supplies used was $280.(10)Paid dividends, $2,400.

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Definitions:

Opening Work In Process

The value of the products that were in the process of being manufactured at the beginning of an accounting period.

Prior Process Costs

Costs that have been incurred in earlier stages of the production process and are carried forward into subsequent stages.

Conversion Costs

The costs incurred during the transformation of raw materials into finished goods, typically including labor and overhead.

Weighted Average Costing

An inventory valuation method that averages the cost of goods available for sale by weighting the costs based on the quantity of each item.