2 w w w N Table 3: Heavenly Creations Entries January Journal Entries for the Month 2 Heaven invested $10,000 in cash into Heavenly Creations 2 Heaven bought indirect ingredients for the cakes in the amount of $2,279 and indirect ingredients in the amount of $150 on account 2 Heaven signed an agreement for a cell phone on account 3 Heaven signed a rental agreement on account for a cash register 3 Heaven purchased a new oven and paid cash 3 Heaven paid her vendors for the cake ingredients bought on account 5 Heaven started using the direct materials to make cakes 28 Recognized payable for Brianna and Alexis direct wages Recognized payable for Heaven's first month of salary 28 Recognized Aunt Ellen wages for supervising nieces 28 Recognized Professor's fee for accounting work 28 Apply Manufacturing Overhead to Production 29 Paid payables for cash register and phone Recorded completion of cakes that are available for sale 29 Recorded Cash Sale of Cakes 29 Record Payment of Indirect Product Cost - Utilities and Rent Paid Labor for Month 31 Recorded Depreciation of Oven 31 Recorded MOH Allocation Adjustment 31 Recorded Raw Material Inventory Adjustment 28 29 30 QUESTION 1 Heaven invested $10,000 in cash into Heavenly Creations Debit Cash; Credit Capital, Heaven Jones, Heaven Jones $10,000 Debit Capital, Heaven Jones, Heaven Jones; Credit Cash $10,000 Debit Cash; Credit Accounts Payable $10,0100 Debit Accounts Payable; Credit Cash $10,0100 Debit Cash; Credit Raw Materials Inventory S10,0100 Debit Raw Materials Inventory; Credit Cash $10,0100 Debit Cash; Credit Work in Process Inventory $10,0100 Debit Work In Process Inventory; Credit Cash $10,0100 Debit Cash; Credit Manufacturing Overhead $10,0100 Debit Manufacturing Overhead Credit Cash $10,0100 QUESTION 2 Heaven bought direct ingredients in the amount of $2.279 and indirect ingredients in the amount of $150 on account Debit Raw Materials Inventory; Credit Accounts Payable $2,279 Debit Raw Materials Inventory 52,279; Debit MOH $150 and Credit Accounts Payable $2,429 Debit Accounts Payable: Credit Raw Materials Inventory $2,429 Debit Accounts Payable: Credit Raw Materials Inventory 52,279 Debit Work In Process Inventory; Credit Accounts Payable $2,279 Debit Work In Process Inventory; Credit Cash $2,429 Debit Accounts Payable; Credit Work In Process Inventory S2,429 Debit Accounts Payable; Credit Work In Process Inventory $2,279 Debit Accounts Payable; Credit Manufacturing Overhead $2,429 Debit Manufacturing Overhead $150; Credit Cash $150 QUESTION 3 Heaven signed an agreement for a cell phone on account Debit Accounts Payable: Credit S&A Expenses $50 O Debit Cash; Credit S&A Expenses $50 Debit S&A Expenses; Credit Cash $50 Debit S&A Expenses; Credit Accounts Payable $50 Debit Cash; Credit Accounts Payable $50 Debit Accounts Payable: Credit Cash $50 Debit Manufacturing Overhead; Credit Cash $50 Debit Cash; Credit Manufacturing Overhead $50 O Debit Manufacturing Overhead Credit Accounts Payable $50 Debit Accounts Payable; Credit Manufacturing Overhead $50 QUESTION 4 Heaven signed a rental agreement on account for a cash register Debit S&A Expenses: Credit Cash $12 Debit Cash; Credit S&A Expenses $12 O Debit Accounts Payable; Credit Cash $12 Debit Accounts Payable; Credit S&A Expenses $12 Debit Cash; Credit Accounts Payable $12 Debit S&A Expenses: Credit Accounts Payable 512 Debit Manufacturing Overhead; Credit Cash $12 Debit Cash; Credit Manufacturing Overhead $12 Debit Manufacturing Overhead Credit Accounts Payable $12 O Debit Accounts Payable; Credit Manufacturing Overhead $12 QUESTION 5 Heaven purchased a new oven and paid cash Debit Cash; Credit Equipment-Oven $6,000 Debit Equipment-Oven; Credit Cash $6,000 Debit Cash; Credit Capital, Heaven Jones $6,000 Debit Capital, Heaven Jones, Credit Cash $6,000 Debit Manufacturing Overhead; Credit Equipment-Oven $6,000 Debit Equipment-Oven; Credit Manufacturing Overhead $6,000 Debit Manufacturing Overhead; Credit Cash $6,000 Debit Cash; Credit Manufacturing Overhead $6,000 Debit Work In Process Inventory; Credit Cash $6,000 Debit Cash; Credit Work In Process Inventory $6,000 QUESTION 6 Heaven paid her vendors for the cake ingredients bought on account Debit Accounts Payable; Credit Cash $2,279 Debit Cash; Credit Accounts Payable $2,429 Debit Cash; Credit Accounts Payable $2,279 Debit Accounts Payable; Credit Raw Materials $2,279 Debit Accounts Payable; Credit Raw Materials $2,429 Debit Accounts Payable: Credit Work In Process Inventory S2,279 Debit Accounts Payable: Credit Work In Process Inventory $2,429 Debit Accounts Payable: Credit Manufacturing Overhead $2,279 Debit Accounts Payable: Credit Manufacturing Overhead $2,429 Debit Accounts Payable; Credit Cash $2,429 QUESTION 7 Heaven started using the direct materials to make cakes Debit Work-In-Process Inventory; Credit Raw Materials Inventory $2,179 Debit Raw Materials Inventory; Credit Work-In-Process Inventory $2,179 Debit Manufacturing Overhead; Credit Raw Materials Inventory $2,179 Debit Raw Materials Inventory; Credit Manufactring Overhead $2,179 Debit Work-In-Process Inventory; Credit Raw Materials Inventory $2,329 Debit Raw Materials Inventory; Credit Work-In-Process Inventory $2,329 Debit Manufacturing Overhead; Credit Raw Materials Inventory $2,329 Debit Raw Materials Inventory; Credit Manufactring Overhead $2,329 Debit Work In Process Inventory; Credit Manufacturing Overhead $150 Debit Raw Materials Inventory; Credit Manufacturing Overhead $150 QUESTION 8 Recognized payable for Brianna and Alexis direct wages O Debit Manufacturing Overhead; Credit Salaries Payable $2,400 Debit Salaries Payable; Credit S&A Expenses $2,400 Debit Salaries Payable: Credit Manufacturing Overhead $2,400 Debit Salaries Payable; Credit Work In Process Inventory $2,400 Debit Salaries Payable; Credit S&A Expenses $2,400 O Debit Work In Process Inventory; Credit Salaries Payable $2,400 QUESTION 9 Recognized payable for Heaven's first month of salary Debit Salaries Payable; Credit S&A Expenses $500 Debit Manufacturing Overhead; Credit Salaries Payable $500 Debit Salaries Payable; Credit Manufacturing Overhead $500 Debit Work In Process Inventory; Credit Salaries Payable $500 Debit S&A Expenses; Credit Salaries Payable $500 Debit Salaries Payable: Credit Work In Process Inventory $500 QUESTION 10 Recognized Aunt Ellen wages for supervising nieces Debit Salaries Payable: Credit S&A Expenses $100 Debit Salaries Payable; Credit Manufacturing Overhead $100 Debit Manufacturing Overhead Credit Salaries Payable $100 Debit S&A Expenses: Credit Salaries Payable $100 Debit Salaries Payable: Credit Work In Process Inventory S100 Debit Work In Process Inventory; Credit Salaries Payable $100 QUESTION 11 Recognized Professor's fee for accounting work Debit S&A Expenses: Credit Salaries Payable $100 Debit Salaries Payable; Credit Manufacturing Overhead $100 Debit Salaries Payable: Credit S&A Expenses $100 Debit Manufacturing Overhead; Credit Salaries Payable $100 Debit Salaries Payable; Credit Work In Process Inventory S101 Debit Work In Process Inventory; Credit Salaries Payable 5101 QUESTION 12 Apply Manufacturing Overhead to Production Debit Manufacturing Overhead; Credit Work In Process Inventory $250 Debit Work In Process Inventory; Credit Manufacturing Overhead $250 Debit Manufacturing Overhead; Credit Work In Process Inventory $800 Debit Manufacturing Overhead; Credit Work In Process Inventory $600 Debit Manufacturing Overhead; Credit Cost of Goods Sold $250 Debit Cost of Goods Sold; Credit Manufacturing Overhead $250 Debit Manufacturing Overhead; Credit Cost of Goods Sold $800 Debit Cost of Goods Sold; Credit Manufacturing Overhead $800 Debit Work In Process Inventory; Credit Manufacturing Overhead $800 Debit Work In Process Inventory; Credit Manufacturing Overhead $600 QUESTION 13 Paid payables for cash register and phone O Debit Cash; Credit Accounts Payable 562 Debit Accounts Payable; Credit Cash 562 Debit Accounts Payable: Credit S&A Expenses $62 Debit Cash; Credit S&A Expenses $62 Debit S&A Expenses; Credit Cash $62 Debit S&A Expenses; Credit Accounts Payable 562 QUESTION 14 Recorded completion of cakes that are available for sale Debit Work In Process Inventory; Credit Cost of Goods Sold $5,379 Debit Work In Process Inventory; Credit Finished Goods Inventory S5,529 Debit Finished Goods Inventory; Credit Work In Process Inventory S5,379 Debit Work In Process Inventory; Credit Finished Goods Inventory S5,379 Debit Cost of Goods Sold: Credit Work In Process Inventory $5,529 Debit Work In Process Inventory; Credit Cost of Goods Sold $5,529 Debit Cost of Goods Sold; Credit Work In Process Inventory $5,379 Debit Finished Goods Inventory; Credit Work In Process Inventory $5,529 QUESTION 15 Recorded Cash Sale of Cakes Debit Cash; Credit Sales $10,000 and Debit Cost of Goods Sold: Credit Finished Goods Inventory $5,379 Debit Finished Goods Inventory; Credit Work In Process Inventory S5,529 Debit Sales: Credit Cash $10,000; and Debit Finished Goods Inventory; Credit Cost of Goods Sold $5,379 Debit Finished Goods Inventory; Credit Work In Process Inventory S5,379 Debit Work In Process Inventory; Credit Finished Goods Inventory $5,379 Debit Work In Process Inventory; Credit Finished Goods Inventory S5,529 Debit Cash; Credit Sales $10,000 Debit Sales; Credit Cash $10,000 Debit Cash; Credit Sales $10,000 and Debit Cost of Goods Sold: Credit Finished Goods Inventory S5,529 Debit Cash; Credit Sales $5,529 and Debit Cost of Goods Sold; Credit Finished Goods Inventory $5,379 QUESTION 16 Record Payment of Indirect Product Cost - Utilities and Rent Debit Cash; Credit Manufacturing Overhead $650 Debit Manufacturing Overhead; Credit Cash $650 Debit Work In Process Inventory; Credit Manufacturing Overhead $650 Debit Manufacturing Overhead; Credit Work In Process Inventory $650 Debit Finished Goods Inventory; Credit Cash $650 Debit Cash; Credit Finished Goods Inventory $650 Debit Cost of Goods Sold; Credit Cash $650 O Debit Cash; Credit Cost of Goods Sold $650 QUESTION 17 Paid Labor for Month O Debit Cash; Credit Salaries Payable $3,100 Debit Salaries Payable: Credit Capital, Heaven Jones $3,100 Debit Capital, Heaven Jones; Credit Salaries Payable $3,100 Debit Salaries Payable; Credit Cash $3,100 Debit Cash; Credit Salaries Payable $2,400 O Debit Salaries Payable; Credit Capital, Heaven Jones $2,400 Debit Capital, Heaven Jones; Credit Salaries Payable $2,400 O Debit Salaries Payable; Credit Cash $2,400 00 QUESTION 18 Recorded Depreciation of Oven O Debit Finished Goods Inventory; Credit Accum. Depreciation $1,200 Debit Finished Goods Inventory; Credit Accum. Depreciation $100 Debit Accum. Depreciation; Credit Manufacturing Overhead $100 Debit Accum. Depreciation; Credit Finished Goods Inventory S100 Debit Accum. Depreciation; Credit S&A Expenses $100 Debit S&A Expenses; Credit Accum. Depreciation $100 Debit Accum. Depreciation; Credit Raw Materials Inventory S100 Debit Raw Materials Inventory; Credit Accum. Depreciations $100 Debit Manufacturing Overhead; Credit Accum. Depreciation $1,200 Debit Manufacturing Overhead; Credit Accum. Depreciation $100 QUESTION 19 Recorded MOH Allocation Adjustment Debit Manufacturing Overhead Credit Cost of Goods Sold $150 Debit Manufacturing Overhead Credit Cost of Goods Sold $200 Debit Finished Goods Inventory; Credit Manufacturing Overhead $200 Debit Manufacturing Overhead; Credit Finished Goods Inventory $200 Debit Cost of Goods Sold; Credit Manufacturing Overhead $150 Debit Cost of Goods Sold; Credit Manufacturing Overhead $200 Debit Finished Goods Inventory; Credit Manufacturing Overhead $150 Debit Manufacturing Overhead; Credit Finished Goods Inventory $150 QUESTION 20 Recorded Raw Material Inventory Adjustment Debit Cost of Goods Sold; Credit Raw Material Inventory $200 Debit Raw Material Inventory; Credit Cost of Goods Sold; $100 Debit Cost of Goods Sold; Credit Raw Material Inventory $100 Debit Raw Material Inventory; Credit Cost of Goods Sold; $200 Debit Raw Material Inventory; Credit Cost of Goods Sold; $2,179 Debit Cost of Goods Sold; Credit Raw Material Inventory $2,179 Debit Raw Material Inventory; Credit Cost of Goods Sold; $2,279 Debit Cost of Goods Sold; Credit Raw Material Inventory $2,279 Debit Finished Goods Inventory; Credit Cost of Goods Sold; $2,279 Debit Cost of Goods Sold; Credit Finished Goods Inventory $2,279