I need help solving this hydropaddle board i know it needs to be journal entries from jan2 to jan 16 on the narrative of transactions

Hydro Paddle Boards, Inc. INTRODUCTION The transactions in this practice set were ompleted by Hydro Paddle Boards, Inc. during anuary, the first month of the company's fiscal year Hydro Paddle Boards, Inc. is a manufacturing corporation that designs and manufactures a limited variety of custom stand-up paddle (SUP) boards. The SUP boards vary in size and performance, including beginner, intermediate, advanced, competition, and Hydro Paddle Boards, Inc. maintains two materials accounts, one for Direct Materials and one for Indirect Materials and Factory Supplies. Factory overhead is applied to each job based on 125% of direct labor cost for that job. Hydro Paddle Boards, Inc. maintains only one factory Overhead represent actual overhead and credits to Factory Overhead represent applied overhead. Since the difference between actual factory overhead and applied factory overhead is insignificant, the racing boards. Hydro Paddle Boards, Inc. maintains a job- order cost system. You have accepted a position with Hydro overapplied or underapplied balance is closed out to Cost of Goods Sold as an adjusting entry at the end of Paddle Boards, Inc. as assistant controller, and you will begin your duties on January 1 of the current year. In your review of the previous assistant controller's records, you notice some jobs were incomplete as of December 31 of the previous year These jobs are contained in the Job Cost Records. You plan to complete most of these jobs in January and to accept new jobs from dealers and other each month. Hydro Paddle Boards, Inc. marks up all work by 40% of the job cost. Refer to the individual Job Cost Record for the total cost of the job, and multiply the total cost by 140% to determine the selling price for each job. Since Hydro Paddle Boards, Inc. sells to builders. You are responsible for the daily accounting operations, preparation of interim financial dealers, sales are exempt from state sales tax. All sales are on account and are subject to terms of 1/10, net 30 days, FOB shipping point. Sales to credit customers expected to take the discount are recorded at the discounted amount. Sales to credit customers who do not normally pay within the discount period are recorded at the gross amount. Since Hydro Paddle mnd endf-mnthjusting and closing Hydro Paddle Boards, Inc. manufactures all products in a single production department. An individual job-order cost sheet is maintained for each job. The job-order cost sheet contains accumulatedBoards, Inc. sells by custom order, it does not accept costs for each job, including actual direct materials,returns of merchandise. actual direct labor, and applied factory overhead Accounts Payable is used solely for the purchase of direct materials and indirect materials and factory supplies. All vendors expect full payment within 30 days. Operating expenses, with the exception of any accrued salaries, payroll taxes, property taxes, and income taxes, are paid when Gross pay for direct labor is recorded by a debit to Work in Process. Salaries for all other factory personnel are recorded by a debit to Factory Overhead. Salaries of nonfactory personnel are recorded at the end of each month by a debit to the appropriate salary expense accounts. Deductions for employees' FICA and federal income taxes are All cash received is deposited in the bank, and recorded whenever gross pay is recorded, using the simplified rates of 7.5% (for FICA, including Medicare) and 15% (for federal income tax). All wages are paid on the last day of the month. All employer payroll taxes are recorded at the end of the month. Payroll taxes related to factory personnel are debited to Factory Overhead. Payroll taxes related to all other company personnel are debited to Payroll all payments are made by check accounts payable item, be sure to record the Receivable Ledger or Accounts Payable Ledger your new responsibilities When dealing with an accounts receivable or company name in the General Journal and post to the Accounts It is January I, and you are ready to assume Good luck Taxes Hydro Paddle Boards, Inc. NARRATIVE OF TRANSACTIONS Applied factory overhead to Job No. 1403 is based upon 125% of direct labor cost. Note: Certain transactions, such as those dealing with payroll, require detailed computational work before preparing the journal entry. These transactions are explained initially in the narrative as they occur. Please refer to the original transaction when preparing a Transferred the completed job to the finished goods account Jan. 4 subsequent similar transaction. 5 Sold and shipped Job No. 1403 to SaltWaterHut.com. All sales are on account 1/10, net 30 days, FOB shipping point. Hydro Paddle Boards, Inc. marks up all work by 40%-of the job cost. individual Job Cost Record for the total cost of the job, and multiply the total cost by 140% to determine the selling price. Jan. 2 Paid Salt Water Mall $7,200.00 for January rent. Of this amount, 30% is for office facilities and 70% isfor factorx facilities, fou 2 Paid RWT Advertising Agency $980.00 for preparing advertisements in local SaltW'aterHut is, not expected to pay within 3 Paid Hi-Foam Products Company $16,826.24 3 Received a check from Calm Waters Board 4 Paid Marine National Bank $45,733.48 for the discount period. Hydro Paddle Boards, Inc. maintains a in payment of the December 31 balance. Corporation for the amount due. December payroll taxes payable as follows inventory system. Each time a sale s made to a customer, you must debit Cost of Goods Sold and credit Finished Goods for the cost of the job. Requisitioned $2,482.54 of indirect materials and factory supplies to be used in the manufacture of all jobs currently in process. (Materials Requisition No. 1680) 8 Employees' Income Tax Payable, $26,353.78; FICA Tax Payable, $17,928.88; Federal Unemployment Tax, $638.38; State Unemployment Tax, $812.44 Paid $14,846.72 for Income Tax Payable. 9 Paid Anabella Henriquez, County Tax 4 Collector, $12,642.00 for property taxes accrued as of December 31 4 Paid Coco PVC Company $21,428.00 in payment of the December 31 balance. 9 Purchased from GT Matrix Corporation 4 Applied $7.248.00 of direct materials (1679) x and $16,240.00 of direct labor (Time Ticket No. 258) to Job No. 1403, which will complete the job. Use the simplified rates of 7.5% of gross pay for employees' FICA tax and 15% of gross pay for employees, federal income tax. When preparing the entry for applying direct labor, debit Work in Process for the gross pay, and credit Employees $4,486.52 of indirect factory supplies, credit terms net 15 days. 9 Accepted a job for the manufacture of 66 units BI (Beginner SUP) paddle boards for Rio Watersports. The promise date is February 14. The company began the job materials to Job No. 1406. (Materials Requisition No. 1681) Income Tax Payable and FICA Tax Payable V Payable for net pay last day of each month. 10 Received a check from Tarpon Sports Ltd for the appropriate amounts and Salaries for the amount due. 11 Paid Light Hardware, Inc. $18,200.00 in Remember that employees are paid on the payment of the December 31 balance Jan. 11 Applied $2,654.28 of direct materials to Job Jan. 24 Paid GT Matrix Corporation the amount du No. 1402. (Materials Requisition No. 1682) today from the January 9 purchase 12 Received a check from Go Paddle Sales 15 Applied $4,428.12 of direct materials to Jolb 16 Company for the amount due. 25 Applied $3,320.00 of direct labor to Job No. 1402, which will complete the job. (Time Ticket No. 262) No. 1404. (Materials Requisition No. 1683) Purchased $1,006.00 of factory supplies from Keyz Supplies Inc. and paid cash. Applied $6,434.00 of direct labor to Job No. 1405, which will complete the job. (Time Ticket No. 260) Applied factory overhead using the rate. Transferred the completed job to the finished goods account. 16 26 Sold and shipped Job No. 1402 to the appropriate customer. Refer to that job's Cost Record for the total cost of the job to determine the selling price. Record the sale net of the 1% discount. Applied factory overhead using the to the finished account. 26 Applied $7,280.00 of direct labor to Job No. 16 Sold one Standard C1 (Competition) custom stand-up paddle (SUP) board to a cash 1408, which will complete the job. (Time Ticket No. 264) customer for $2,800.00. The cost of the goods shipped from finished goods inventory Applied factory overhead using the appropriate rate. Transferred the completed job to the finished 17 Requisitioned $2,235.00 of indirect materials account 29 Sold and shipped Job No. 1408 to the jobs currently in process. (Materials Requisition No. 1684) appropriate customer. Refer to the Job Cost Record for the total cost of the job for billing purposes, Record the sale net of the 1% discount 17 Signed a contract with Extreme Board Systems for the manufacture of 77 units RI (Racing 1) custom stand-up paddle (SUP) boards. The promise date is February 15. The company began the job today, applying $8,440.000 of direct materials to Job No. 1407. (Materials Requisition No. 1685) 29 Paid D H20 Corp. the amount due in payment of the January I balance. Received a check from HP SUP, Inc. for the amount due after the discount period has expired. 29 Paid Post Office $1,000.00 for postage added to postage meter. Expense this amount 17 Paid the sales manager of Hydro Paddle 29 Boards, Inc. $285.24 for customer entertaining. 29 Paid Telephone Company $500.00 for January phone service. 18 Received a report from the treasurer that Blue Runner Sports Dealers, one of our customers, has declared bankruptcy. Wrote 29 Paid Island Signs &Advertising Company 52,000.00 for designing ads for our Intemet website. off the balance owed to Hydro Paddle Boards, Inc. by Blue Runner Sports Dealers. 29 Paid Atlantic Power and Light Company 18 Sold and shipped Job No. 1405 to the appropriate customer. Refer to that job's Cost Record for the total cost of the job to determine the selling price. The customer is $8,432.00 for heat, power, and light. Allocate 25% of this amount to Electricity Expense and 75% to Factory Overhead. not expected to pay within the discount 31 Applied $2,000.00 of direct labor to Job No. period. 1404. (Time Ticket No. 266) from K.C. Epoxy Supply Company, credit terms net 30 days. Applied factory overhead using the appropriate rate. This job will not be completed until February 22 Purchased $20,464.32 of direct materials Applied $8,440.00 of direct labor to Job No. 1407. (Time Ticket No. 268) 22 Accepted a job for the manufacture of 28 The 31 units R2 (Racing 2) custom stand-up paddle (SUP) boards for Four Oceanic Designers The company began the job today, applying S4,936.20 of direct materials to Job No. 1408. (Materials Requisition No. 1686) appropriate rate. This job will not be completed until March factory overhead using the promise date is J Jan. 31 Applied S2,320.00 of direct abor to Job No. Jan. 31 Paid all employees for wages eamed i 1406. (Time Ticket No. 270) Applied factory overhead using the January Purchased $16,428.00 of direct materials on account from Light Hardware, Inc. 31 completed until February 31 Received the following data on the monthly (For the manual set, complete the Trial Balance d payroll from the payroll clerk: Direct labor (already recorded). New payroll data (to b Factory: column of the work sheet at this point) $46,034.00 Jan. 31 Insurance expired during January: Factory (debit Factory Overhead) $2,628.00 Indirect. $22,440.00 Superintendent's salary.6,200.00 122.50 537.60 General 31 Office supplies inventory as of January 31, $3,300.00. Depreciation for the month: Factory equipment (debit 23,950.00 14,280.00 12,620.25 Officers' salaries 31 Office salaries Record the monthly payroll in the general Factory Overhead) $1,284.00 journal. Remember that direct labor payroll already has been recorded as it was incurred in January. Salaries for indirect labor are Office equipment739.40 Amortization of patents for January (debit Factory Overhead) $450.00 Property tax accrued for the month: Factory (debit Factory Overhead) $970.00 31 recorded only at the end of the month. Debit Factory Overhead for indirect labor and superintendent's salaries, debit other salary expense accounts for the appropriate amounts, credit FICA Tax Payable for 7.5% of gross pay, credit Employees' Income Tax Payable for 15% of gross pay, and credit Salaries Payable for the net pay 31 274.52 31 Close out underapplied Factory Overhead of 31 Based on past experience, Hydro Paddle 31 Record the employer payroll taxes for Boards, Inc. estimates that $15,800.00 is a reasonable balance for the January 3I January. All payroll taxes related to personnel are debited to Factory Overhead; all payroll taxes related to nonfactory balance in the Allowance for Doubtfull Accounts personnel are debited to Payroll Taxes Expense- General. Use a simplified FICA tax rate of 7.5% of gross pay, a state 31 Income tax is based on 40% of income before tax. Accrue income tax owed by debiting Income Tax Expense and crediting Income Tax Payable for $13,110.11 unemployment tax rate of 5.4%, and a federal unemployment tax rate of 0.8%. Since this is the first month in the current year, no employee has reached the ceilings on the (For the manual set, complete the work sheet and payroll taxes. Use the form on page 46 (optional) to determine the amounts for the Closing Entries: journal entry. prepare financial statements at this point) Prepare closing entries to close revenue and expense accounts to Income Summary, and transfer net income to Retained Earnings. (It is acknowledged that this step is not until year end; this is for l purposes only.) Prepare a Post- Jan. 31 31 Received a check from SaltWaterHut.com for the amount due. Received a check from Fiji Stand-Up Paddle Board Co. for the amount due. 31 Closing Trial Balance. EXHIBITS Hydro Paddle Boards, Inc. Schedule of Accounts Receivable January 1, 20Y8 Name Balance Aqua-Stream Paddle Board Company. Blue Runner Sports Dealers Calm Waters Board Corporation. Extreme Board System... Fiji Stand-Up Paddle Board o. 6,480.00 4,346.00 16,693.38 26,550.88 39,426.00 Go Paddle Sales Company45,883.22 14,429.94 HP SUP, In.. ts Ltd.. 21,031.56 Total lotal S174,840.98 Hydro Paddle Boards, Inc. Schedule of Accounts Payable January 1, 20Y8 Balance $21,428.00 ....37,244.00 Name Coco PVC Company D H20 Corp. Hi-Foam Products Company Light Hardware, Inc. 16,826.24 18.200.00 Tota... JOB COST RECORD JOB NUMBER: 1402 CUSTOMER NAME: Calm Waters Board Corporation JOB DESCRIPTION:102 umits !1 Intermediate SUP DATE PROMISED: January 29 DATE STARTED: December 15 DATE COMPLETED: DIRECT MATERIALS DIRECT LABOR FACTORY OVERHEAD NUMBER AMOUNT |TIME TICKET DATE RATE AMOUNT Dec. 15 1661 $18.900.00 Dec. 31 Dec 31 125% of DL cost $3315000 244,246 $26,52000 OVERALL COST SUMMARY DIRECT LABOR FACTORY OVERHEAD TOTAL JOB COST JOB COST RECORD DATE PROMISED: JanuaryII JOB NUMBER: 1403 CUSTOMER NAME: SaltWater Hut.com JOB DESCRPTION : Bunts B1 (Beginner-SUP) DATE STARTED: December 18 DATE COMPLETED DIRECT LABOR FACTORY OVERHEAD DIRECT MATERIALS TIME TICKET! AMOUNT | DATE RATE AMOUNT DATE NUMBER Dec 31 1125% of DL cost $18.650 00 Dec. 181668 Dec. 31 248 250$1492000 OVERALL COST SUMMARY DIRECT MATERIALS.. DIRECT LABOR FACTORY OVERHEAD TOTAL JOB COST JOB COST RECORD JOB NUMBER: ]404 CUSTOMER NAME: Fiji Stand-Up Padle Board Co JOB DESCRIPTION: 94 units Al (Advanced SUP DATE PROMISED: February DATE STARTED. December 19 DATE COMPLETED: DIRECT MATERIALS DIRECT LABOR REQUISITION AMOUNT | NUMBERS FACTORY OVERHEAD DATE | NUMBERAMOUNTTIME TICKET AMOUNT DATE RATE AMOUNT Dec. 19 Dec. 31 -167226.512.001 252 $12.280.00 Dec. 31 125% ofDL cost $15.350 00 OVERALL COST SUMMARY DIRECT MATERIALS. DIRECT LABOR FACTORY OVERHEAD TOTAL JOB COST ...- JOB COST RECORD DATE PROMISED: Jawary 25 DATE STARTED. December 22 JOB NUMBER: 1405 CUSTOMER NAME: A.J. Outfitters Company JOB DESCRIPTION: 75 Janits Advanced Cl (Competition SUP DATE COMPLETED FACTORY OVERHEAD DIRECT LABOR DIRECT MATERIALS TIME TICKET AMOUNT| DATE RATE AMOUNT DATE NUMBER ! $31,325 00 Dec. 31|125% ofDL cost 22 1677 1677$21,030.00 Dec. 22 Dec. 31 OVERALL COST SUMMARY DIRECT MATERIALS DIRECT LABOR FACTORY OVERHEAD TOTAL J0B COST JOB COST RECORD JOB NUMBER: 1406 CUSTOMER NAME: Rio Watersports JOB DESCRIPTION: 66 units BI Beginner-SUP)DATE COMPLETED: DATE PROMISED: February 14 DATE STARTED: January 9 DIRECT MATERIALS DIRECT LABOR FACTORY OVERHEAD DATE | NUMBER AMOUNT TIME TICKET NUMBERS RATE AMOUNT OVERALL COST SUMMARY DIRECT MATERIALS RECT LABOR FACTORY OVERHEAD TOTAL JOB COST JOB COST RECORD DATE PROMISED: February 1 DATE STARTED Jamuary 17 JOB NUMBER: 1407 CUSTOMER NAME: Extreme Board Systems JOB DESCRIPTION: 77 units RI (Racing I-SUP) DATE COMPLETED FACTORY OVERHEAD DIRECT LABOR DIRECT MATERIALS REQUISITIONAMOUNT NUMBERS IME TICKETAMOUNT RATE AMOUNT NUMBER | AMOUNT |TMETCKET OVERALL COST SUMMARY DIREC MATERIALS DIRECT LABOR FACTORY OVERHEAD TOTAL JOB COST JOB COST RECORD JOB NUMBER: 1408 CUSTOMER NAME: Four Oceanic Designers JOB DESCRIPTION, 28 unis R2 (Racing 2-Sun DATE PROMISED: Jamary 31 DATE STARTED: Janucary 22 DATE COMPLETED DIRECT MATERIALS DIRECT LABOR FACTORY OVERHEAD REQUISITIO AMOUNTNUMBERS NUMBERS AMOUNT DATE RATE AMOUNT OVERALL COST SUMMARY DIRECT MATERIALS DIRECT LABOR FACTORY OVERHEAD TOTAL JOB COST , "-. JOB COST RECORD DATE PROMISED: DATE STARTED: JOB NUMBER CUSTOMER NAME: JOB DESCRIPTION: DATE COMPLETED FACTORY OVERHEALD DIRECT LABOR DIRECT MATET TREQUSTO AMOUNT |NUMBERS RATE AMOUNT DATE N NUMBER NNUMBER AMOUNT TIME TICKET OVERALL COST SUMMARY DIRECT MATERIALS DIRECT LABOR FACTORY OVERHEAD TOTAL JOB COST