Scrooge, Inc. prepares adjusting entries only at the end of its fiscal year, August 31. Scrooge has the following unadjusted account balances at August 31. Accounts payable $300 Cash $6,100 Common stock $1,500 Prepaid rent $3,600 Service revenue $5,000 Rent expense $800 Retained earnings $300 Unearned revenue $4,000 Wages expense $600 The following facts are available for the fiscal period: The current pay period concludes on Sept. 8th, when the employee will be paid his wages of $180. The employee earns $100 before August 31st and the rest between Sept. 1st and Sept. 8th. On July 1st, Scrooge paid $3,600 to cover its rent for the next six months. On May 1st, Scrooge collected $4,000 in advance for services to be performed in the future. Scrooge completed 80% of this work before the end of the fiscal year. What net income should Scrooge report for the fiscal year

Harwood company uses a job-order costing system that applies overhead cost to jobs on the basis of machine-hours. the company's predetermined overhead rate of $2.50 per machine-hour was based on a cost formula that estimates $240,000 of total manufacturing overhead for an estimated activity level of 96,000 machine-hours. required: 1. assume that during the year the company works only 91,000 machine-hours and incurs the following costs in the manufacturing overhead and work in process accounts: compute the amount of overhead cost that would be applied to work in process for the year and make the entry in your t-accounts. 2a. compute the amount of underapplied or overapplied overhead for the year and show the balance in your manufacturing overhead t-account. 2b. prepare a journal entry to close the company's underapplied or overapplied overhead to cost of goods sold.