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indirect labor-salaries of people who work in the factory but don't make the products (production manager, maintenance staff, security, janitorial crews, etc)
indirect materials-materials used in production that are too small to keep track of individually (glue, cleaning supples, etc)
other overhead (factory rent, property tax, and insurance, machine deprecation, toilet paper in factory bathroom, etc) 15th EditionRay H Garrison716 explanations
5th EditionEric W. Noreen, Peter C. Brewer, Ray H Garrison518 explanations
9th EditionCharles T. Horngren, Walter T Harrison, Walter T. Harrison Jr.1,143 explanations
16th EditionMadhav V Rajan, Srikant M. Datar1,008 explanations
ACCOUNTINGThe accounts of Gleneagles Company prior to the year-end adjustments follow.
$$
\begin{matrix}
\text{Cash......................................... } & \text{\$ 7,300 } & \text{Common stock............................. } & \text{\$ 14,000 }\\
\text{Accounts receivable..................} & \text{7,500 } & \text{Retained earnings.........................} & \text{46,000 }\\
\text{Supplies....................................} & \text{4,600 } & \text{Dividends..................................... } & \text{16,000 }\\
\text{Prepaid insurance..................... } & \text{3,500 } & \text{Service revenue............................. } & \text{161,000 }\\
\text{Building....................................} & \text{110,000} & \text{Salary expense.............................. } & \text{37,000}\\
\text{Accumulated depreciation - building.................................} & \text{15,600 } & \text{Depreciation expense-building..................................... } & \quad\\
\text{Land.........................................} & \text{53,000 } & \text{Supplies expense...........................} & \quad\\
\text{Accounts payable..................... } & \text{6,100} & \text{Insurance expense........................ } & \quad\\
\text{Salary payable..........................} & \quad & \text{Advertising expense.....................} & \text{7,300 }\\
\text{Unearned service revenue.........} & \text{5,500} & \text{Utilities expense...........................} & \text{2,000}\\
\end{matrix}
$$
Adjusting data at the end of the year include the following: a. Unearned service revenue that has been earned, $1,650 b. Accrued service revenue,$32,200 c. Supplies used in operations, $3,100 d. Accrued salary expense,$3,500 e. Prepaid insurance expired, $1,500 f. Depreciation expense—building,$2,600 Rorie St.Pierre, the principal stockholder, has received an offer to sell Gleneagles Company. He needs to know the following information within one hour: a. Net income for the year covered by these data b. Total assets c. Total liabilities d. Total stockholders’ equity e. Proof that Total assets = Total liabilities + Total stockholders’ equity after all items are updated. Without opening any accounts, making any journal entries, or using a work sheet, provide Mr. St. Pierre with the requested information. The business is not subject to income tax.
