Velasco Co. uses a job order cost system. The following data summarize the operations related to production for July: July 1 Materials purchased on account, $203,940   2 Materials requisitioned, $191,480, of which $15,530 was for general factory use   31 Factory labor used, $598,400, of which $63,620 was indirect   31 Other costs incurred on account for factory overhead, $290,400; selling expenses, $158,300; and administrative expenses, $110,900   31 Prepaid expenses expired for factory overhead, $21,310; for selling expenses, $6,250; and for administrative expenses, $7,940   31 Depreciation of office building was $40,100; of office equipment, $13,500; and of factory equipment, $51,200   31 Factory overhead costs applied to jobs, $452,240   31 Jobs completed, $1,003,200   31 Cost of goods sold, $992,600   Required:   Journalize the entries to record the summarized operations. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.     Chart of Accounts     CHART OF ACCOUNTS Velasco Co. General Ledger   ASSETS 110 Cash 121 Accounts Receivable 125 Notes Receivable 126 Interest Receivable 131 Materials 132 Work in Process 133 Factory Overhead 134 Accumulated Depreciation-Factory Equipment 135 Finished Goods 141 Supplies 142 Prepaid Insurance 143 Prepaid Expenses 181 Office Building 182 Accumulated Depreciation-Office Building 191 Office Equipment 192 Accumulated Depreciation-Office Equipment   LIABILITIES 210 Accounts Payable 221 Utilities Payable 231 Notes Payable 236 Interest Payable 241 Lease Payable 251 Wages Payable 252 Consultant Fees Payable   EQUITY 311 Common Stock 340 Retained Earnings 351 Dividends   REVENUE 410 Sales 610 Interest Revenue   EXPENSES 510 Cost of Goods Sold 520 Wages Expense 531 Selling Expenses 532 Insurance Expense 533 Utilities Expense 534 Office Supplies Expense 540 Administrative Expenses 561 Depreciation Expense-Office Building 562 Depreciation Expense-Office Equipment 590 Miscellaneous Expense 710 Interest Expense     Journal     Journalize the entries to record the summarized operations. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. PAGE 10   JOURNAL ACCOUNTING EQUATION

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Velasco Co. uses a job order cost system. The following data summarize the operations related to production for July:
July 1 Materials purchased on account, $203,940
  2 Materials requisitioned, $191,480, of which $15,530 was for general factory use
  31 Factory labor used, $598,400, of which $63,620 was indirect
  31 Other costs incurred on account for factory overhead, $290,400; selling expenses, $158,300; and administrative expenses, $110,900
  31 Prepaid expenses expired for factory overhead, $21,310; for selling expenses, $6,250; and for administrative expenses, $7,940
  31 Depreciation of office building was $40,100; of office equipment, $13,500; and of factory equipment, $51,200
  31 Factory overhead costs applied to jobs, $452,240
  31 Jobs completed, $1,003,200
  31 Cost of goods sold, $992,600
 
Required:
  Journalize the entries to record the summarized operations. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
 
 
Chart of Accounts
 
 
CHART OF ACCOUNTS
Velasco Co.
General Ledger
  ASSETS
110 Cash
121 Accounts Receivable
125 Notes Receivable
126 Interest Receivable
131 Materials
132 Work in Process
133 Factory Overhead
134 Accumulated Depreciation-Factory Equipment
135 Finished Goods
141 Supplies
142 Prepaid Insurance
143 Prepaid Expenses
181 Office Building
182 Accumulated Depreciation-Office Building
191 Office Equipment
192 Accumulated Depreciation-Office Equipment
  LIABILITIES
210 Accounts Payable
221 Utilities Payable
231 Notes Payable
236 Interest Payable
241 Lease Payable
251 Wages Payable
252 Consultant Fees Payable
  EQUITY
311 Common Stock
340 Retained Earnings
351 Dividends
  REVENUE
410 Sales
610 Interest Revenue
  EXPENSES
510 Cost of Goods Sold
520 Wages Expense
531 Selling Expenses
532 Insurance Expense
533 Utilities Expense
534 Office Supplies Expense
540 Administrative Expenses
561 Depreciation Expense-Office Building
562 Depreciation Expense-Office Equipment
590 Miscellaneous Expense
710 Interest Expense
 
 
Journal
 
 
Journalize the entries to record the summarized operations. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
PAGE 10
 
JOURNAL
ACCOUNTING EQUATION
 
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