Journalize the following transactions for

Lake's Seats.

Explanations are not required.

1(Click

the icon to view the transactions.)

(Record debits first, then credits. Exclude explanations from any journal entries.)

a. Incurred and paid Web site expenses,

$2,200.

Date			Accounts	Debit	Credit
a.			Website Expenses	2,200
			Cash		2,200

b. Incurred manufacturing wages of

$11,000,

60%

of which was direct labor and

40%

of which was indirect labor.

Date			Accounts	Debit	Credit
b.			(1)
			(2)
			(3)
			(4)

c. Purchased raw materials on account,

$17,000.

Date			Accounts	Debit	Credit
c.			(5)
			(6)
			(7)
			(8)

d. Used in production: direct materials,

$7,000;

indirect materials,

$4,500.

Date			Accounts	Debit	Credit
d.			(9)
			(10)
			(11)
			(12)

e. Recorded manufacturing overhead: depreciation on plant,

$14,000;

plant insurance (previously paid),

$1,900;

plant property tax,

$3,800

(credit Property Tax Payable). (Prepare a compound entry.)

Date			Accounts	Debit	Credit
e.			(13)
			(14)
			(15)
			(16)

f. Allocated manufacturing overhead to jobs,

240%

of direct labor costs.

Date			Accounts	Debit	Credit
f.			(17)
			(18)
			(19)
			(20)

g. Completed production on jobs with costs of

$36,000.

Date			Accounts	Debit	Credit
g.			(21)
			(22)
			(23)
			(24)

h. Sold inventory on account,

$20,000;

cost of goods sold,

$14,000.

Begin by recording the revenue from the sales on account. Do not record the expense related to the sale in this journal entry. We will do that in the next step.

Date			Accounts	Debit	Credit
h.			(25)
			(26)
			(27)
			(28)

Now record the expense related to the sale.

Date			Accounts	Debit	Credit
h.			(29)
			(30)
			(31)
			(32)

i. Adjusted for overallocated or underallocated overhead.

Date			Accounts	Debit	Credit
i.			(33)
			(34)
			(35)
			(36)

1: More Info

a.	Incurred and paid Web site expenses, $2,200.
b.	Incurred manufacturing wages of $11,000, 60% of which was direct labor and 40% of which was indirect labor.
c.	Purchased raw materials on account, $17,000.
d.	Used in production: direct materials, $7,000; indirect materials, $4,500.
e.	Recorded manufacturing overhead: depreciation on plant, $14,000; plant insurance (previously paid), $1,900; plant property tax, $3,800 (credit Property Tax Payable).
f.	Allocated manufacturing overhead to jobs, 240% of direct labor costs.
g.	Completed production on jobs with costs of $36,000.
h.	Sold inventory on account, $20,000; cost of goods sold, $14,000.
i.	Adjusted for overallocated or underallocated overhead.

(1)

Accounts Payable

Accounts Receivable

Accumulated DepreciationPlant

Cash

Cost of Goods Sold

Finished Goods Inventory

Manufacturing Overhead

Prepaid Insurance

Property Tax Payable

Raw Materials Inventory

Sales Revenue

Wages Payable

Website Expenses

Work-in-Process Inventory

YOU ANSWERED:

Date			Accounts	Debit	Credit
a.			Manufacturing Overhead	110400	nothing
			Manufacturing Overhead	118000	7600
			nothing	nothing	nothing
			nothing	nothing	nothing