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Following information is from first month of operations. Make a Statement of
1/1 Ray incorporated B&C Inc and invested $100,000 in exchange for 100,000 shares of $1 par common stock.
1/1 Paid $9,000 for the first 6 months of rent (Jan-June) on a production facility.
1/1 Paid $4,200 for an insurance premium on a one-year policy.
1/1 Purchased a $15,000 piece of factory equipment with a 3% Note Payable which will be paid in full at the end of 2 years. This equipment has an estimated life of 5 years and an estimated residual value of $3,000.
1/2 Purchased $600 of supplies from Office Hoard Corp on account with terms 2/10, n/30.
1/3 Purchased $50,000 of raw materials from Chemical Supply Inc on account.
1/5 Requisitioned $10,000 of raw materials to begin working on Job A (a batch of doodads) and another $7,000 of raw materials to begin working on Job B.
1/8 Paid off account with Office Hoard Corp with cash.
1/10 Incurred $2,500 worth of direct labor costs while working on Job A and another $1,800 of direct labor went to Job B.
1/11 Allocated $5,000 worth of factory overhead (based on a previously calculated rate) to Job A and $3,600 is allocated to Job B.
1/13 Job A was completed.
1/16 Job A was sold for $36,000 to Retail Corp on account with FOB destination terms.
1/17 Paid $800 for delivery charges for Job A.
1/20 Incurred (but did not pay)
1/23 Paid all previously incurred wages with cash.
1/28 Paid $5,000 for advertising services with cash.
1/30 Incurred $1,500 of legal expenses which will be paid on February 10th.
1/30 Received $10,000 from Retail Corp to partially pay off their account.
1/30 B&C Inc issued 50,000 shares of $1 par common stock in exchange for $75,000 from Elizabeth (a new investor).
1/31 Paid $25,000 to Chemical Supply Inc to partially pay off the account.
1/31 Announced a $3,000 cash dividend which will be distributed on February 5th.
1/31 There are $120 of supplies on hand.
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