GINCommentQUI2. Gibbs Manufacturing Co. was incorporated on 1/2/25 but was unable to begin manufacturingactivities until 8/1/25 because new factory facilities were not completed until that date. The Land andBuildings account set up by an inexperienced bookkeeper at 12/31/25 per the books was as follows:Date1/31/252/28/254/1/255/1/255/1/255/1/258/1/258/1/2512/31/25ItemLand and dilapidated buildingCost of removing buildingLegal feesFire insurance premium paymentSpecial tax assessment for streetsPartial payment of new building constructionFinal payment on building constructionGeneral expensesAsset write-upAmount$200,0004,0006,0005,4002025: 4,5003. Legal fees covered the following:Cost of organizationExamination of title covering the purchase of landLegal work in connection with the building construction210,000210,00030,00075,000$744,90012%Additional information regarding the purchase of the land and the construction of the new building in2025:President's salaryPlant superintendent covering supervision of new building1. To acquire the land and building on 1/31/25, the company paid $100,000 cash and 1,000 shares ofits common stock (par value = $100/share) which is very actively traded and had a fair value pershare of $180.2. When the old building was removed, Gibbs paid Kwik Demolition Co. $4,000 and received $1,500from the sale of salvaged material.ayable$2,5002,0001,500$6,0004. The fire insurance premium covered premiums for a three-year term beginning May 1, 2025.5. General expenses covered the following for the period 1/2/25 to 8/1/25.$20,00010,000$30,000construction6. Because of the rising land costs, the president was sure that the land was worth at least $75,000more than what it cost the company.InstructionsDetermine the proper balances as of 12/31/25 for a separate land account and a separate buildingsaccount. Label all the relevant amounts and disclose all computations.

2. Gibbs Manufacturing Co. was incorporated on 1/2/25 but was unable to begin manufactu activities until 8/1/25 because new factory facilities were not completed until that date. The Land Buildings account set up by an inexperienced bookkeeper at 12/31/25 per the books was as follow Item Land and dilapidated building Cost of removing building Legal fees Fire insurance premium payment 5/1/25 Special tax assessment for streets Date 1/31/25 2/28/25 4/1/25 5/1/25 Amount $200,000 4,000 6,000 5,400 4,500

2. Gibbs Manufacturing Co. was incorporated on 1/2/25 but was unable to begin manufactu activities until 8/1/25 because new factory facilities were not completed until that date. The Land Buildings account set up by an inexperienced bookkeeper at 12/31/25 per the books was as follow Item Land and dilapidated building Cost of removing building Legal fees Fire insurance premium payment 5/1/25 Special tax assessment for streets Date 1/31/25 2/28/25 4/1/25 5/1/25 Amount $200,000 4,000 6,000 5,400 4,500

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Crawford Corporation incurred the following transactions. Accounting Transactions No. Transactions 1. Purchased raw materials on account $46,800. 2. Raw Materials of $40,900 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $8,600 was classified as indirect materials. (Hint: Raw materials of $40,900 are applied to production. of $40,900, $8,600 are indirect materials. Make sure to calculate the amount of direct materials.) 3. Factory labor costs incurred were $63,800, of which $51,500 pertained to factory wages payable and $12,300 pertained to employer payroll taxes payable. 4. Time tickets indicated that $54,300 was direct labor and $9,500 was indirect labor. (Hint: Factory labor including direct labor and indirect labor was assigned to production.) Journalize the transactions. List debit transactions first and then list credit transactions. Date Account Titles and Explanation Debit ($) Credit ($) 1.…
Bramble Corp. was organized on January 1. During the first year of operations, the following plant asset expenditures and receipts were recorded in random order. 1. 2. 3. 4. 5. 6. 7. 8. 2. 10. Item 1. 2. 3. 4. 5. 6. 7. Excavation costs for new building Architect's fees on building plans Full payment to building contractor Cost of real estate purchased as a plant site Cost of parking lots and driveways Accrued real estate taxes paid at time of purchase of land Installation cost of fences around property Cost of demolishing building to make land suitable for construction of new building Real estate taxes paid for the current year on land Debit Analyze the transactions using the following table column headings. Enter the amounts in the appropriate columns. For amounts in the Other Accounts column, also indicate the account title. (If an amount reduces the account balance then enter with a negative sign preceding the number, e.g.-15,000 or parenthesis, e.g. (15,000).) Proceeds from salvage…
The Genesis Corporation has the following account balances (in millions): For Specific Date Direct materials, January 1, 20X1 Work in process, January 1, 20XI Finished goods, January 1, 20X1 Direct materials, December 31, 20X1 Work in process, December 31, 20X1 Finished goods, December 31, 20X1 For Year 20X1 P15 Purchases of direct materials P325 10 Direct manufacturing labor 70 Depreciation - plant building and equipment 5 Plant supervisory salaries 55 Miscellaneous plant overhead 100 20 80 5 35 Revenues 950 Marketing, distribution and customer-service costs 240 Plant supplies used Plant utilities 10 30 Indirect manufacturing labor 60 Required: 1. Prepare an income statement and a supporting schedule of costs of goods manufactured for the year ended December 31, 20X1.
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Q.2. Crawford Corporation incurred the following transactions. (i) Purchased raw materials on account OMR86,300. (ii) Raw materials of OMR73,900 were requisitioned to the factory. An analysis of the materials requisition slips indicated that OMR6,800 was classified as indirect materials. (iii) Factory labor costs incurred were OMR53,900, of which OMR51,000 pertained to factory wages payable and OMR2,900 pertained to employer payroll taxes payable. (iv) Time tickets indicated that OMR4,000 was indirect labor and OMR49,900 was direct labor. (v) Manufacturing overhead costs incurred on account were OMR85,500. (vi) Manufacturing overhead was applied at the rate of 110% of direct labor cost. (vii) Goods costing OMR98,000 were completed. (viii) Finished goods costing OMR95,000 to manufacture were sold for cash for OMR113,000. Instructions:Journalize the transactions. (Omit explanations.)
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