Question: Carlson Company incurred the following manufacturing overhead costs during the month of June 2010. Prepare the journal entry to record the costs.
Depreciation, building $7,000
Wages earned but not yet paid, janitor $600
Electricity used and paid, factory $350
Rent on equipment previously paid $900
Debit (DR) Depreciation Expense - Building 7,000
Credit (CR) Accumulated Depreciation - Building 7,000
Debit (DR) Wages Expense 600
Credit (CR) Wages Payable 600
Debit (DR) Utilities Expense - Factory 350
Credit (CR) Cash 350
Debit (DR) Equipment Rental Expense 900
Credit (CR) Prepaid Equipment Rental 900