Solved

Prepare Journal Entries Without Explanations for the Following Transactions Involving

question 150

Essay

Prepare journal entries without explanations for the following transactions involving notes payable for Gomez Company,whose fiscal year ends June 30.
$\begin{array}{|l|l|l|}\hline \text { June } & 20& \begin{array}{c}\text { Paid a trade account payable with a } 90 \text {-day, } 9 \text { percent } \$ 60,000 \text { note. Interest is } \\\text { in addition to the face value. }\end{array} \\\hline & 30& \text { Made end-of-year adjusting entry to accrue interest expense for the note. } \\\hline & 30 &\text { Made end-of-year closing entry pertaining to interest expense. } \\\hline \text { Sept. } & 18 &\text { Paid amount due on note, plus interest. }\\\hline\end{array}$
$Prepare journal entries without explanations for the following transactions involving notes payable for Gomez Company,whose fiscal year ends June 30. \begin{array}{|l|l|l|} \hline \text { June } & 20& \begin{array}{c} \text { Paid a trade account payable with a } 90 \text {-day, } 9 \text { percent } \$ 60,000 \text { note. Interest is } \\ \text { in addition to the face value. } \end{array} \\ \hline & 30& \text { Made end-of-year adjusting entry to accrue interest expense for the note. } \\ \hline & 30 &\text { Made end-of-year closing entry pertaining to interest expense. } \\ \hline \text { Sept. } & 18 &\text { Paid amount due on note, plus interest. }\\ \hline \end{array}$

Definitions:

Work In Process Inventory

Goods that are in the process of being manufactured but are not yet complete.

Fixed Overhead Costs

Regular, unchanged costs incurred by a business, regardless of its level of production or activity, such as rent and salaries.

Control Perspective

An approach focusing on the monitoring and adjusting of processes and strategies to achieve desired outcomes or objectives.

Revenue Variance

The difference between how much the revenue should have been, given the actual level of activity, and the actual revenue for the period. A favorable (unfavorable) revenue variance occurs because the revenue is higher (lower) than expected, given the actual level of activity for the period.