Durham Company's trial balance as of January 1, the beginning of the current year, is shown below. Cash Accounts Receivable Raw Materials Work in Process Finished Goods Prepaid Insurance Plant and Equipment Accumulated Depreciation Accounts Payable Capital Stock Retained Earnings Total $ 8,000 13,000 7,000 18,000 20,000 4,000 230,000 $ 42,000 30,000 150,000 78,000 $300,000 $300,000 Durham Company uses a job-order costing system. During the year, the following transactions took place: a. Raw materials were purchased on account: $45,000. b. Raw materials were requisitioned for use in production: $40,000 (80% direct and 20% indirect). c. Factory utility costs were incurred: $14,600. d. Depreciation was recorded on plant and equipment: $28,000. Three-fourths of the depreciation relates to factory equipment, ar the remainder relates to selling and administrative equipment. o Cocte for salarior and C. Factory utility costs were incurrea. $14,600. d. Depreciation was recorded on plant and equipment: $28,000. Three-fourths of the depreciation relates to factory equipment, and the remainder relates to selling and administrative equipment. e. Costs for salaries and wages were incurred as follows: Direct labour Indirect labour Sales commissions Administrative salaries $40,000 $18,000 $10,400 $25,000 f. Prepaid insurance expired during the year: $3,000 (80% relates to factory operations, and 20% relates to selling and administrative activities) g. Miscellaneous selling and administrative expenses were incurred: $18,000. h. Manufacturing overhead was applied to production. The company applies overhead on the basis of 150% of direct labour cost. 1. Goods that cost $130,000 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. J. Goods that had cost $120,000 to manufacture according to their job cost sheets were sold on account for $200,000. k. Collections from customers during the year totalled $197,000. 1. Payments to suppliers on account during the year totalled $100,000; payments to employees for salaries and wages totalled $90,000 Required: 1.& 2. Prepare a T-account for each account in the company's trial balance, and enter the beginning balances. Make an entry directly Required: 1.& 2. Prepare a T-account for each account in the company's trial balance, and enter the beginning balances. Make an entry directly into the T-accounts for transactions (a) through (1). Also post adjusting or closing entries, if any. Determine an ending balance for each T-account. Cash Accounts Receivable 8,000 Beg. Bal. 13,000 Beg. Bal. k. 197,000 190,000 15,000 J. 197,000 0 200,000 16,000 End. Bal. End. Bal