Mass Media Company Departmental Expense Allocations
For the year ended December 31
Allocation Expense General Office TV Radio
Base Account Dept. Dept. Dept.
Direct Expenses
Salaries Payroll records 60000 45000 20000
Supplies Requisitions 5000 3000 2000
Indirect Expenses
Rent expense Floor space 60000 42000 18000
Utilities expense Floor space 10000 7000 3000
General office expense 50000 50000
Total department expenses 190000 50000 97000 55500
Mass Media Company
Floor Space Analysis
Square Percent of Rent Expense Utilities Expense
Feet Square Feet Allocation Allocation
TV Department 2,800 70% 30% $42,000 $7,000
Radio Department 1200 30% 18000 3000
Total 4000 100% 60000 10000
Rent expense of $3,000 is allocated to Department A and Department B based on square footage. Department A has 5,000 square feet and Department B has 2,500 square feet. The dollar amount of rent expense allocated to Department B is.

Fred smithers, a recent college graduate decided to open his own portable juice bar, smithers smoothies, to wheel around newport beach. you, a trusted friend of fred, are a business major that has also recently graduated and agreed to handle the books for a while to get some practical experience and have a favor that you can ask of fred in the future. given the following five transactions concerning the new venture, prepare the necessary journal entries for the transactions, post the journal entries to appropriate t accounts and prepare a trial balance as of the end of the month in order to answer to the necessary may 2: fred invests $12,000 of his own money to start the new company. this money was obtained from a part-time job working at a legal firm while he was in school. may 3: fred spent $5,100 cash to purchase a refrigerated trailer that he can pull behind his car and set up at the beach. under your advice, fred agrees to place the new asset under an account called "equipment." may 6: fred bought $640 of supplies on account from the flav-o-rite confectioners company. because they will last longer than a single accounting period fred agrees to record them as, "supplies" as per your suggestion. may 13: fred sat on the beach for six hours without a single sale and was feeling very down. right before he left, however, a plumber escorting his family reunion along the beach stopped by his stand and bought $800 worth of smoothies for the entire family. under your advice, fred agrees to call this cash revenue, "sales." may 15: excited about his new venture, fred withdraws $350 from the company to take his girlfriend out to dinner. what would be the balance in the cash account at the end of the period following the posting of all the transactions?