A Company Entered into the Following Transactions

question 47

Essay

A company entered into the following transactions. For each transaction, indicate the appropriate journal in which it would be recorded.
$\begin{array}{|l|l|}\hline {\text { Transaction }} & \text { Record in Journal } \\\hline \text { 1. Borrowed cash from the bank } & \\\hline \text { 2. Purchased merchandise for cash } & \\\hline \text { 3. Paid cash to settle the utility bill } & \\\hline \text { 4. Customer sent in cash to settle an account } & \\\text { receivable } & \\\hline \text { 5. Purchased merchandise on credit } & \\\hline \text { 6. Recorded depreciation for the period } & \\\hline \text { 7. Sold merchandise on credit } & \\\hline \text { 8. Sold merchandise for cash } & \\\hline \text { 9. Bought store supplies for cash } & \\\hline \text { 10. Owner invested more cash in the business } & \\\hline\end{array}$

Understand the concepts of absorption and activity-based costing (ABC).

Calculate the full cost of a product using absorption costing.

Calculate the full cost of a product using activity-based costing (ABC).

Identify and calculate the cost drivers in activity-based costing.

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Definitions:

Child Tax Credit

A credit aimed at helping families offset some of the costs of raising children by reducing their tax liability.

AGI

Adjusted Gross Income, calculated as gross income minus specific adjustments, used to determine tax liability and eligibility for certain tax benefits.

Adoption Credit

A tax credit offered to adoptive parents to offset the costs of adoption, available under the U.S. tax code.

Modified AGI

Adjusted Gross Income with certain adjustments added back in, used for determining eligibility for certain tax deductions and credits.