1.

The following accounting events affected Nelson Manufacturing Company during its first three years of operation. Assume that all transactions are cash transactions.

Transactions for 2013

1.	Started manufacturing company by issuing common stock for $3,700.
2.	Purchased $1,290 of direct raw materials.
3.	Used $770 of direct raw materials to produce inventory.
4.	Paid $400 of direct labor wages to employees to make inventory.
5.	Applied $340 of manufacturing overhead cost to Work in Process Inventory.
6.	Finished work on inventory that cost $940.
7.	Sold goods that cost $670 for $1,150.
8.	Paid $380 for selling and administrative expenses.
9.	Actual manufacturing overhead cost amounted to $220 for the year.

Transactions for 2014

1.	Acquired additional $1,100 of cash from common stock.
2.	Purchased $1,220 of direct raw materials.
3.	Used $1,200 of direct raw materials to produce inventory.
4.	Paid $550 of direct labor wages to employees to make inventory.
5.	Applied $300 of manufacturing overhead cost to Work in Process Inventory.
6.	Finished work on inventory that cost $1,860.
7.	Sold goods that cost $1,540 for $2,890.
8.	Paid $440 for selling and administrative expenses.
9.	Actual manufacturing overhead cost amounted to $340 for the year.

Transactions for 2015

1.	Paid a cash dividend of $800.
2.	Purchased $1,430 of direct raw materials.
3.	Used $1,150 of direct raw materials to produce inventory.
4.	Paid $370 of direct labor wages to employees to make inventory.
5.	Applied $310 of manufacturing overhead cost to work in process.
6.	Finished work on inventory that cost $2,040.
7.	Sold goods that cost $2,290 for $3,580.
8.	Paid $690 for selling and administrative expenses.
9.	Annual manufacturing overhead costs were $230 for the year.

a. prepare an income statement, and a balance sheet as of the close of business on December 31, 2013, 2014 and 2015. (table must be fixed and adjusted for correctness)

NELSON MANUFACTURING COMPANY
Financial Statements
	2013	2014	2015
Income Statements
Sales revenue
Cost of goods sold
Gross margin	0	0	0
Selling and administrative expense
Net income	$0	$0	$0
Balance Sheets
Assets
Cash
Raw materials inventory
Total Assets	$0	$0	$0
Equity
Common stock
Retained earnings
Total Equity	$0	$0	$0