Steelcase Inc. is one of the largest manufacturers of office furniture in the United States. In Grand Rapids, Michigan, it assembles filing cabinets in an Assembly Department. Assume the following information for the Assembly Department: Direct labor per filing cabinet 12 minutes Supervisor salaries $150,000 per month Depreciation $24,500 per month Direct labor rate $22 per hour Prepare a flexible budget for 18,000, 20,000, and 22,000 filing cabinets for the month of August in the Assembly Department, similar to Exhibit 5.
On October 1, Sam's Painting Service borrows $150,000 from National Bank on a 3-month, $150,000, 4% note. The entry by Sam's Painting Service to record payment of the note and accrued interest on January 1 isDR Notes Payable 150,000; DR Interest Payable 1,500; CR Cash 151,500DR Notes Payable 151,500; CR Cash 151,500DR Notes Payable 150,000; DR Interest Payable 6,000; CR Cash 156,000DR Notes Payable 150,000; DR Interest Expense 1,500; CR Cash 151,500
