Instructions:

Velasco Co$.$ uses a job order cost system. The following data summarize the operations related to production for July:

July $1$ Materials purchased on account, $$663,320$

$2$ Materials requisitioned, $$618,780,$ of which $$71,310$ was for general factory use

$31$ Factory labor used, $$640,350,$ of which $$88,200$ was indirect

$31$ Other costs incurred on account for factory overhead, $$140,430$; selling expenses, $$245,050$; and administrative expenses, $$145,440$

$31$ Prepaid expenses expired for factory overhead, $$30,100$; for selling expenses, $$27,880$; and for administrative expenses, $$18,590$

$31$ Depreciation of office building was $$86,490$; of office equipment, $$45,350$; and of factory equipment, $$30,880$

$31$ Factory overhead costs applied to jobs, $$365,760$

$31$ Jobs completed, $$1,017,410$

$31$ Cost of goods sold, $$911,220$

Required:

Journalize the entries to record the summarized operations. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

CHART OF ACCOUNTS

Velasco Co$.$

General Ledger

ASSETS

$110$ Cash

$121$ Accounts Receivable

$125$ Notes Receivable

$126$ Interest Receivable

$131$ Materials

$132$ Work in Process

$133$ Factory Overhead

$134$ Accumulated Depreciation$-$Factory Equipment

$135$ Finished Goods

$141$ Supplies

$142$ Prepaid Insurance

$143$ Prepaid Expenses

$181$ Office Building

$182$ Accumulated Depreciation$-$Office Building

$191$ Office Equipment

$192$ Accumulated Depreciation$-$Office Equipment

LIABILITIES

$210$ Accounts Payable

$221$ Utilities Payable

$231$ Notes Payable

$236$ Interest Payable

$241$ Lease Payable

$251$ Wages Payable

$252$ Consultant Fees Payable

EQUITY

$311$ Common Stock

$340$ Retained Earnings

$351$ Dividends

REVENUE

$410$ Sales

$610$ Interest Revenue

EXPENSES

$510$ Cost of Goods Sold

$520$ Wages Expense

$531$ Selling Expenses

$532$ Insurance Expense

$533$ Utilities Expense

$534$ Office Supplies Expense

$540$ Administrative Expenses

$561$ Depreciation Expense$-$Office Building

$562$ Depreciation Expense$-$Office Equipment

$590$ Miscellaneous Expense

$710$ Interest Expense

Journalize the entries to record the summarized operations. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

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JOURNALACCOUNTING EQUATION

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Journal has $28$ entriesor credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

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