This is a new manufacturing corporation that issued "$30000" common stock for cash on the first day. All overhead expenses are paid immediately by cash. To make it easy, there are no other operating expenses and no income tax. No Dividend is declared for the year.1. What is the Work in process account balance at the end of the period?2. What is the Retained Earnings account balance at the end of the period (as mentioned before no Dividend has been declared) in the Equity section of the Balance Sheet?3. What is the Net Income at the end of the period in the Income Statement?4. What is the Cash account balance at the end of the period?5. What is the Raw Material balance at the end of the period?6. What is the Total Asset balance at the end of the period in the Balance sheet? GENERAL JOURNALDate8-4-X58-8-X58-9-X58-10-X5Raw Materials InventoryAccounts PayableTo record purchase of raw materialsAccountsWork in ProcessRaw Materials InventorySalaries PayableFactory OverheadTo transfer raw materials to production, recorddirect labor costs on job, and apply overhead at thepredetermined rateFinished Goods InventoryWork in Process8-10-X5 CashSalesTo transfer completed units to finished goodsinventoryTo record sale of finished awning for $4,000Cost of Goods SoldFinished Goods InventoryTo transfer finished goods to cost of goods soldDebit4,0006,6004,4004,0002,200Page 1Credit4,0002,4003,0001,2004,4004,0002,200 Cool Sun produces awnings and screens. Prepare journal entries to reflect the following transactions. After you completethe entries, determine the amount to include in raw materials, work in process, and finished goods.Aug. 4, 20X5Aug. 8, 20X5Aug. 8, 20X5Aug. 9, 20X5Aug. 10, 20X5Purchased fabric and aluminum to be used in the manufacturing process. The purchase pricewas $4,000, on account.Transferred 60% of the raw materials purchased on August 4 into production.Incurred direct labor costs of $3,000. Factory overhead is applied at 40% of the direct laborcost.Transferred completed awnings with total assigned costs of $4,400 to finished goods.Sold and delivered half of the finished goods (from August 9) to a customer for $4,000 cash.

A balance sheet is an accounting report that shows a corporation's assets liabilities, and…

Answered: This is a new manufacturing corporation…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

100%

This is a new manufacturing corporation that issued "$30000" common stock for cash on the first day. All overhead expenses are paid immediately by cash. To make it easy, there are no other operating expenses and no income tax. No Dividend is declared for the year.

1. What is the Work in process account balance at the end of the period?

2. What is the Retained Earnings account balance at the end of the period (as mentioned before no Dividend has been declared) in the Equity section of the Balance Sheet?

3. What is the Net Income at the end of the period in the Income Statement?

4. What is the Cash account balance at the end of the period?

5. What is the Raw Material balance at the end of the period?

6. What is the Total Asset balance at the end of the period in the Balance sheet?

GENERAL JOURNAL
Date
8-4-X5
8-8-X5
8-9-X5
8-10-X5
Raw Materials Inventory
Accounts Payable
To record purchase of raw materials
Accounts
Work in Process
Raw Materials Inventory
Salaries Payable
Factory Overhead
To transfer raw materials to production, record
direct labor costs on job, and apply overhead at the
predetermined rate
Finished Goods Inventory
Work in Process
8-10-X5 Cash
Sales
To transfer completed units to finished goods
inventory
To record sale of finished awning for $4,000
Cost of Goods Sold
Finished Goods Inventory
To transfer finished goods to cost of goods sold
Debit
4,000
6,600
4,400
4,000
2,200
Page 1
Credit
4,000
2,400
3,000
1,200
4,400
4,000
2,200

Cool Sun produces awnings and screens. Prepare journal entries to reflect the following transactions. After you complete
the entries, determine the amount to include in raw materials, work in process, and finished goods.
Aug. 4, 20X5
Aug. 8, 20X5
Aug. 8, 20X5
Aug. 9, 20X5
Aug. 10, 20X5
Purchased fabric and aluminum to be used in the manufacturing process. The purchase price
was $4,000, on account.
Transferred 60% of the raw materials purchased on August 4 into production.
Incurred direct labor costs of $3,000. Factory overhead is applied at 40% of the direct labor
cost.
Transferred completed awnings with total assigned costs of $4,400 to finished goods.
Sold and delivered half of the finished goods (from August 9) to a customer for $4,000 cash.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Earnings Quality, Measurement and Management

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions