E F . Financial Accounting Problem 2 Consider the following transactions that occurred in February, 2020 for Diamonds, Inc. Feb. 3 Purchased inventory on terms 1/15, n/e.o.m. $3,000 Feb. 4 Purchased inventory for cash of $1,500 Feb. 6 Returned $300 of inventory from Feb. 4 purchase Feb. 8 Sold goods on terms of 2/15, n/35 of $5,000 that cost $2.400 Feb. 10 Paid for goods 7. archased on Feb. 3 Feb. 12 Received goods from Feb. 8 sale of $1,000 that cost $450 Feb. 23 Received payment from Feb. 8 customer Feb. 25 Sold goods to Bames for $900 that cost $350. Terms of n/30 were offered. As a courtesy to Barnes. $150 of freight was added to the invoice for which cash was paid directly to UPS by Diamonds Inc. Feb 28 Received payment from Barnes 7 3 2 1 Problem 2 Requirement 1. Journalize February transactions for Diamonds, Inc. No explanations are required. 4 5 6 Record the February 3 purchase B E og 9 $5 $7 A 1 Exercise 2. 2 Preparing a schedule of cost of goods manufactured and an income statement 3 4 Kelley Company has the following information for the year ended December 31, 2021. 5 Use the information to prepare a schedule of cost of goods manufactured and an income 6 statement. All amounts are shown in millions 7 Inventories: Beginning Ending 9 Raw Materials 10 Work-in-Process 10 16 11 Finished Goods 12 12 Other information: 13 Sales Revenue $ 225 83 14 Selling and Administrative Expenses 42 15 Direct Labor 21 16 Manufacturing Overhead 35 17 Materials Purchases 18 19 20 21 8 22