The cost of certain overhead items for the month was

The cost of certain overhead items for the month was as follows:
Rent for production facility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,600
Insurance premium for the month . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,200
Monthly depreciation on equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,600
Repairs on equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,800
Payment for these items was as follows:
a. Quack Company is required to pay one year’s rent, which totals $55,200, in advance. This amount was paid three months ago. The $4,600 amount represents the rent applicable for this month.
b. Quack Company is required to pay for six months’ insurance, which totals $19,200, in advance. This amount was paid two months ago. The $3,200 amount represents the insurance applicable for this month.
c. Depreciation is recognized on a straight-line basis.
d. The repairs were performed in the current month. Quack Company will pay for the repairs next month. Make the necessary journal entries to record these items.

Members

  • Access to 2 Million+ Textbook solutions
  • Ask any question from 24/7 available
    Tutors
$9.99
VIEW SOLUTION

OR

Non-Members

Get help from Managerial Accounting Tutors
Ask questions directly from Qualified Online Managerial Accounting Tutors .
Best for online homework assistance.