The Hambrick Company manufactures terry cloth towels. Jones accountant, Alice is preparing the month end reports and journal entries. She sees that during the month of June, Jones Company transferred $112, 000 of completed towels to the appropriate account. What is the journal entry to record this transaction?

INTRODUCTION TO COST ACCOUNTING

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

The Hambrick Company manufactures terry cloth towels. Jones’ accountant, Alice is preparing the month end reports and journal entries. She sees that during the month of June, Jones Company transferred $112, 000 of completed towels to the appropriate account. What is the journal entry to record this transaction?

A	Debit Finished Goods for $112, 000 and Credit Work in Process for $112, 000
B	Debit Finished Goods for $112, 000 and Credit Cost of Goods Sold for $112, 000
C	Debit Cost of Goods Sold for $112, 000 and Credit Finished Goods for $112, 000
D	Debit Cost of Goods Sold for $112, 000 and Credit Finished Goods for $112, 000

Explanation:

Detailed explanation-1: -Income statement accounts that may need to be adjusted include interest expense, insurance expense, depreciation expense, and revenue. The entries are made in accordance with the matching principle to match expenses to the related revenue in the same accounting period.

Detailed explanation-2: -The most liquid of all assets, cash, appears on the first line of the balance sheet.

Detailed explanation-3: -Cash flow statement Your cash flow statement shows you how cash has changed in your revenue, expense, asset, liability, and equity accounts during the accounting period. Prepare your cash flow statement last because it takes information from all of your other financial statements.

Detailed explanation-4: -The first step in the accounting cycle is identifying transactions. Companies will have many transactions throughout the accounting cycle.

There is 1 question to complete.