Prepare reversing journal entries for Hendrix Company on January 1, 20-2. The following year-end adjustments were made:

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Prepare reversing journal entries for Hendrix Company on January 1, 20-2. The following year-end adjustments were made:

Prepare reversing journal entries for Hendrix Company on January 1, 20-2. The following year-end adjustments were made:
20-1
Dec. 31 Interest Receivable 230
 Interest Revenue 230
31 Interest Expense 875
 Interest Payable 875
31 Work in Process Inventory 4,250
 Factory Overhead 4,250

Answer & Explanation (1)

Explanation
The general journal is the book where entries are initially made relating to financial transactions entered into by the company.

The first journal entry is a debit to interest revenue and a credit to interest receivable of $230 to reverse adjusting entry related to accruals.

The second journal entry is a debit to interest payable and a credit to interest expense of $875 to reverse adjusting entry related to accruals.

The third journal entry is a debit to factory overhead and a credit to work in process inventory of $4,250 to reverse adjusting entry to apply overhead to work in process.

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