The normal cost entry associated with the billing of a job would a. Debit cost of...

The normal cost entry associated with the billing of a job would a. Debit cost of sales and credit work in process b. Debit work in process and credit cost of sales c. Debit cost of sales and credit sales Real estate Co. owns a shopping center in Manhattan Beach and leases to Trader Joes for 5 years. The annual lease payments over 5 years are as follows: Yr 1: 100,000 Yr 2: 120,000 Yr 3: 140,000 Yr 4: 160,000 Yr 5: 180,000 700,000 Question: 1. Management has been asked by third parties to provide financials on a GAAP basis. What is the amount of revenue recognized in year 1 of the lease? 2. What is the Journal entry? Your client has been making monthly payments on a company car that was financed through FMC at an annual interest rate of 5%. The monthly payment amount is $1,000. When accounting for the payments he would record a debit to the Auto Expense account and a credit to cash. Is this accounting correct? In not, how should the payments be accounted for

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Expert Solution

Answer to 1st question is a. Debit cost of sales and credit work in process

When a job is completed then finished goods inventory is debited and WIP is credited along with cost of goods sold debited and finished goods inventory credited.

For the 2nd question,

Part 1) $100000

Part 2) Cash Debit $100000

Lease Revenue or lease rental income Creidted $100000

ekkarill92 answered 2 years ago

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