on december 31 20a loganville canning company with outstanding common stock of 30 00 3387258

On December 31, 20A, Loganville Canning Company, with outstanding common stock of $30,000, had the following assets and liabilities: Cash …………………………………………… $ 5,000 Accounts Receivable ………………………… 10,000 Finished Goods ……………………………… 6,000 Work in Process ……………………………… 2,000 Materials ………………………………………. 4,000 Prepaid Expenses ……………………………… 500 Property, Plant, and Equipment (net) ………… 30,000 Current Liabilities …………………………… 17,500 During 20B, the retained earnings balance increased 50% as a result of the year s business. No dividends were paid during the year. Balances of accounts receivable, prepaid expenses, current liabilities, and common stock were the same on December 31, 20B, as they had been on December 31, 20A. Inventories were reduced by exactly 50%, except finished goods, which was reduced by 33 1/3%. Plant assets (net) were reduced by depreciation of $4,000, charged three-fourths to factory overhead and one-fourth to administrative expense. Sales of $60,000 were made on account, costing $38,000. Direct labor cost was $9,000. Factory overhead was applied at a rate of 100% of direct labor cost, leaving $2,000 under applied, which was closed into the cost of goods sold account. Total marketing and administrative expenses (including depreciation) amounted to 1

 

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