Protonix Corp has a payroll of $8,000 for a five-day workweek. Its employees are paid each Friday for the five-day workweek. The adjusting entry on December 31, 2015 assuming the year ends on Thursday would be:
Definitions:
FIFO Earnings
The net income calculated using the First-In, First-Out method of inventory valuation, assuming the first items purchased are the first sold.
Inventory Units
Inventory units are the measurable quantities of goods or materials on hand, stored or processed by a business, intended for sale or production.
Goods Available
The total quantity of goods on hand for sale during a specific period, including both beginning inventory and purchases made.
Beginning Inventory
The value of goods available for sale at the start of an accounting period.
Q15: Prepare an income statement and a statement
Q51: Which of the following accounts should be
Q54: You have just accepted your first job
Q70: Responsibility accounting reports that are given to
Q81: The balances in the ledger of Good
Q110: Division X reported income from operations of
Q156: Net income appears on the work sheet
Q159: If the adjustment for accrued salaries at
Q172: The adjusted trial balance verifies that total
Q183: If the profit margin for a division