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A Business Hired a Repair Service to Overhaul Its Plumbing

question 32

Essay

A business hired a repair service to overhaul its plumbing system.The repair service began work on September 15 and completed it on October 15.The business agreed to pay the service $4,000 when the work was completed.As of September 30,the work was 50% complete,and the business made an adjusting entry to accrue repair expense as of the end of September.On October 15,the work was completed,and the repair service was paid in full.Provide the journal entry for the cash payment on October 15.(Ignore explanation).


Definitions:

Departmentation

The process of dividing an organization into distinct departments or units, each managed separately, to streamline operations and improve efficiency.

Sales Department

A division of a business that is responsible for selling the company’s products or services to customers.

Production Department

The production department is a segment of an organization responsible for the actual creation and manufacturing of goods or services offered by the company.

R&D Department

The division within a company dedicated to research and development activities aimed at innovating and improving products or processes.

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