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Madison Harris, the owner, invested $8,200 cash and $35,200 of photography equipment in the company in exchange for common stock. The company paid $3,800 cash for an insurance policy covering the next 24 months. The company purchased office supplies for $1,050 cash.
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On October 31, the company’s records show the following items and amounts. Also assume the following: The owner’s initial investment consists of $36,750 cash and $46,030 in land in exchange for its common stock.. The company’s $16,580 equipment purchase is paid in cash.
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Determine whether overhead is overapplied or underapplied. Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold. Determine whether overhead is overapplied or underapplied. Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold. Q12.
Last Update: Oct 2021
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