One reason that distributions of income and loss are prepared is to obtain the information to record a closing entry
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following statements concerning retained earnings is not true?
a. Cash dividends reduce retained earnings; b. Stock dividends do not affect retained earnings; c. Appropriating retained earnings has no effect on total stockholders' equity; d. Stock splits do not affect retained earnings; e. Appropriating retained earnings has not effect on assets
Asset accounts on the manufacturing company work sheet do not include
a. Factory Overhead; b. Factory Equipment; c. Work in Process Inventory; d. Materials Inventory; e. Finished Goods Inventory
Ethical issues and legal issues are essentially the same
Indicate whether the statement is true or false
Mocha Company manufactures a single product by a continuous process, involving three production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $50,000,
$60,000, and $70,000, respectively. Department 2 has transferred-in costs of $390,000 for the current period. In addition, work in process at the beginning of the period for Department 2 totaled $75,000, and work in process at the end of the period totaled $90,000. The journal entry to record the flow of costs into Department 3 during the period is: A) Work in Process--Department 3 375,000Work in Process--Department 2 375,000 B) Work in Process--Department 3 570,000Work in Process--Department 2 570,000 C) Work in Process--Department 3 490,000Work in Process--Department 2 490,000 D) Work in Process--Department 3 555,000Work in Process--Department 2 555,000