Given Below Are the Amounts from Surf Corporation's Ledger Accounts

question 187

Essay

Given below are the amounts from Surf Corporation's ledger accounts after adjustments have been posted at December 31,2017.
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$$\begin{array} { l r l r } \text { Sales Revenue } & \$ 60,000 & \text { Accounts Receivable } & \$ 8,200 \\\text { Accounts Payable } & 1,500 & \text { Rent Expense } & 2,100 \\\text { Cash } & 25,600 & \text { Prepaid Rent } & 1,500 \\\text { Salaries Expense } & 2,900 & \text { Salaries Payable } & 800 \\\text { Retained Earnings, January 1 } & 22,100 & \text { Dividends } & 5,000 \\\text { Depreciation Expense } & 1,000 & \text { Supplies } & 900 \\\text { Supplies Expense } & 2,200 & \text { Cost of Goods Sold } & 40,000 \\\text { Notes Payable } & 3,000 & \text { Common Stock } & 2,000\end{array}$$ A. Identify which adjustments that Surf Corporation most likely made that are:

1) Accrued assets

2) Accrued liabilities

B. Which accounts listed above would not be used in a cash-basis system?

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Definitions:

Direct Labor Payroll

The total amount of money paid to employees directly involved in manufacturing products or providing services.

Standard Rate of Pay

The regular amount of pay given for standard work hours or for performing a standard task or job.

Unfavorable Variance

The difference between actual costs and standard or budgeted costs when actual costs are higher, indicating lower profitability.

Actual Costs

The real, specific expenses incurred or required to perform an operation, produce an item, or offer a service.