Exercise 11-15A (Algo) Recording events in T-accounts and preparing financial statements LO 11-1, 11-2, 11-3 Thornton Manufacturing Company was started on January 1, Year 1, when it acquired $3,500 cash from the issue of common stock. During the first year of operation, $2,300 of direct raw materials was purchased with cash, and $1,350 of the materials was used to make products. Direct labor costs of $2,500 were paid in cash. Thornton applied $790 of overhead cost to the Work in Process account. Cash payments of $790 were were made for actual overhead costs. The company completed products that cost $3,100 and sold goods that had cost $2,400 for $3,500 cash. Selling and administrative expenses of $630 were paid in cash. Required Prepare T-accounts and record the events affecting Thornton Manufacturing. Include closing entries. Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet
Exercise 11-15A (Algo) Recording events in T-accounts and preparing financial statements LO 11-1, 11-2, 11-3
Thornton Manufacturing Company was started on January 1, Year 1, when it acquired $3,500 cash from the issue of common stock. During the first year of operation, $2,300 of direct raw materials was purchased with cash, and $1,350 of the materials was used to make products. Direct labor costs of $2,500 were paid in cash. Thornton applied $790 of
Required
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Prepare T-accounts and record the events affecting Thornton Manufacturing. Include closing entries.
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Prepare a schedule of cost of goods manufactured and sold, an income statement, and a
balance sheet .
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