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14. In the Excel, or spreadsheet, approach to recording financial transactions, if manufacturing overhead is underapplied...

14. In the Excel, or spreadsheet, approach to recording financial transactions, if manufacturing overhead is underapplied by X dollars, the Manufacturing Overhead account is closed out by deducting X dollars in the Manufacturing Overhead column and deducting X dollars in the Retained Earnings column.

True or false

16. In the Excel, or spreadsheet, approach to recording financial transactions, expired insurance coverage on factory equipment is recorded as a decrease in the Prepaid Insurance column and as a decrease in the Retained Earnings column.

True or False

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Expert Solution

14. In the Excel, or spreadsheet, approach to recording financial transactions, if manufacturing overhead is underapplied by X dollars, the Manufacturing Overhead account is closed out by deducting X dollars in the Manufacturing Overhead column and deducting X dollars in the Retained Earnings column.
True
The journal entry will be
Debit     Cost of Goods sold
Credit    Manufacturing Overhead a/c
So, Mfg. OH a/c is reduced & Retained earnings is reduced as COGS increases.
16. In the Excel, or spreadsheet, approach to recording financial transactions, expired insurance coverage on factory equipment is recorded as a decrease in the Prepaid Insurance column and as a decrease in the Retained Earnings column.
True
The journal entry will be
Debit     Insurance expense
Credit    Prepaid Insurance
So, Prepaid insurance is reduced & Retained earnings is reduced as Insurance expense increases.

ekkarill92 answered 2 years ago
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