June transactions are summarized as follows: (Click the icon to view the transactions.) School Stars produces stars for elementary teachers to reward their students. School Stars' trial balance on June 1 follows: (Click the icon to view the trial balance.) June 1 balances in the subsidiary ledgers were as follows: (Click the icon to view the balances.) Read the requirements. Requirement 1. Journalize the transactions for the company. (Record debits first, then credits. Exclude explanations from any journal entries.) a. Collections on account, $154,000 Date Accounts Debit Credit a. Cash 154000 Accounts Receivable 154000 b. Selling and administrative expenses incurred and paid, $30,000 Date Accounts Debit Credit b. 30000 Selling and Administrative Expenses Cash 30000 cnnn c. Payments on account, $44,000 Date Accounts Debit Credit C. Accounts Payable 44000 Cash 44000 d. Materials purchased on credit: Paper, $23,300; indirect materials, $4,900 (Prepare a single journal entry for this event.) Date Accounts Debit Credit d. 28200 Raw Materials Inventory Accounts Payable 28200 e. Materials requisitioned and used in production: Job 120: Paper, $600, Job 121: Paper, $7,600, Indirect materials, $1,600 (Prepare a single journal entry for this event.) Date Accounts Debit Credit e. Work-in-Process Inventory Manufacturing Overhead Raw Materials Inventory f. Wages incurred during June, $41,000. Labor time records for the month: Job 120, $3,700; Job 121, $17,250; indirect labor, $20,050 (Prepare a single journal entry for this event.) Date Accounts Debit Credit f. Work-in-Process Inventory Manufacturing Overhead Wages Payable g. Wages paid in June include the balance in the Wages Payable account at May 31 plus $38,000 of wages incurred in June. Date Accounts Debit Credit g. Wages Payable Cash h. Depreciation on plant and equipment, $3,100 Date Accounts Debit Credit h. Manufacturing Overhead Accumulated Depreciation i. Manufacturing overhead was allocated at the predetermined overhead allocation rate of 50% of direct labor costs. Date Accounts Debit Credit i. Work-in-Process Inventory Manufacturing Overhead j. Jobs completed during the month: Job 120, 100,000 Large Stars at total cost of $45,650 Date Accounts Debit Credit j. Finished Goods Inventory Work-in-Process Inventory k. Sales on account: all of Job 120 for $133,000 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 k. Accounts Receivable Sales Revenue Now record the cost of goods sold related to the sale of all of Job 120. Date Accounts Debit Credit k. Cost of Goods Sold Finished Goods Inventory I. Adjusted for overallocated or underallocated manufacturing overhead. Date Accounts Debit Credit 1. Cost of Goods Sold Manufacturing Overhead Requirement 2. T-accounts for the general ledger, the Raw Materials Inventory subsidiary ledger, the Work-in-Process Inventory subsid balance as given. Post the journal entries to the T-accounts using the transaction letters as a reference. Begin with posting the transactions to the general ledger accounts. Key each transaction by transaction letter, and calculate the ending transaction. For accounts with a zero balance, enter a "0" along with a "Bal." reference on the normal side of the T-account.) Review the journal entries you prepared in Requirement 1. Cash Accounts Receivable Raw Materials Inventory Bal. 25,000 |(b) Bal. 190,000 (a) Bal. 5,700 (e) (a) (c) |(k) (d) (9) Bal. Bal. Bal. Work-in-Process Inventory 39,500 10) Property, Plant, and Equipment 270,000 Bal. Finished Goods Inventory Bal. 20,000 (k) (0) Bal. (e) (f) (0) Bal. Bal. Bal. Accumulated Depreciation Accounts Payable Wages Payable (c) (g) 71,000 Bal. (h) 128,000 Bal. (d) 1,700 Bal. (f) Un IN Inn Common Stock Retained Earnings Sales Revenue 142,000 Bal. 207,500 Bal. (k) Bal. Bal. Bal. Cost of Goods Sold Selling and Admin. Expenses (k) (e) Manufacturing Overhead (0) (1) (b) (1) (f) (h) but ID Post the transactions to the Raw Materials Inventory subsidiary ledger accounts. Key each transa Paper Indirect Materials Bal. 4,900 (e) 800 (e) Bal. (d) (d) Bal. Bal. Job 120 Job 121 Bal. 39,500 () (e) (f) (f) (i) V (0) Bal. 0 Bal. Post the transactions to the Finished Goods Inventory subsidiary ledger accounts. Key each transaction by Large stars Small stars Bal. 9,100 (k) Bal. 10,900 (i) School Stars Trial Balance June 30, 2018 Balance Account Title Debit Credit Cash Accounts Receivable Inventories: Raw Materials Work-in-Process Finished Goods Property, Plant and Equipment Accumulated Depreciation Accounts Payable Wages Payable Common Stock Retained Earnings Sales Revenue Cost of Goods Sold Manufacturing Overhead Selling and Administrative Expenses Total School Stars Schedule of Cost of Goods Manufactured Month Ended June 30, 2018 Beginning Work-in-process Inventory Direct Materials Used Direct Labor Manufacturing Overhead Allocated Total Manufacturing Costs Incurred during the Month Total Manufacturing Costs to Account for III Ending Work-in-Process Inventory Cost of Goods Manufactured . Income Statement Month Ended June 30, 2018 Sales Revenue Cost of Goods Sold: Beginning Finished Goods Inventory Cost of Goods Manufactured Cost of Goods Available for Sale Ending Finished Goods Inventory Cost of Goods Sold Before Adjustment Adjustment for Underallocated Overhead Cost of Goods Sold II Gross Profit School Stars Trial Balance June 1, 2018 Balance Account Title Debit Credit Cash $ 25,000 Accounts Receivable 190,000 Inventories: Raw Materials 5,700 Work-in-Process 39,500 20,000 Finished Goods 270,000 Property, Plant, and Equipment Accumulated Depreciation $ 71,000 Accounts Payable 128,000 X i More Info Raw Materials Inventory subsidiary ledger: Paper, $4,900; indirect materials, $800 Work-in-Process Inventory subsidiary ledger: Job 120, $39,500; Job 121, $0 Finished Goods Inventory subsidiary ledger: Large Stars, $9,100; Small Stars, $10,900 Print Done a. Collections on account, $154,000. b. Selling and administrative expenses incurred and paid, $30,000. c. Payments on account, $44,000. d. Materials purchased on account: Paper, $23,300; indirect materials, $4,900. e. Materials requisitioned and used in production: $ 600 Job 120: Paper Job 121: Paper $ 7,600 Indirect materials, $ 1,600 f. Wages incurred during June, $41,000. Labor time records for the month: Job 120, $3,700; Job 121, $17,250; indirect labor, $20,050. g. Wages paid in June include the balance in the Wages Payable at May 31 plus $38,000 of wages incurred during June. h. Depreciation on plant and equipment, $3,100. i. Manufacturing overhead allocated at the predetermined overhead allocation rate of 50% of direct labor costs. j. Jobs completed during the month: Job 120 with 100,000 Large Stars at a total cost of $45,650. k. Sales on account: all of Job 120 for $133,000. I. Adjusted for overallocated or underallocated manufacturing overhead. June transactions are summarized as follows: (Click the icon to view the transactions.) School Stars produces stars for elementary teachers to reward their students. School Stars' trial balance on June 1 follows: (Click the icon to view the trial balance.) June 1 balances in the subsidiary ledgers were as follows: (Click the icon to view the balances.) Read the requirements. Requirement 1. Journalize the transactions for the company. (Record debits first, then credits. Exclude explanations from any journal entries.) a. Collections on account, $154,000 Date Accounts Debit Credit a. Cash 154000 Accounts Receivable 154000 b. Selling and administrative expenses incurred and paid, $30,000 Date Accounts Debit Credit b. 30000 Selling and Administrative Expenses Cash 30000 cnnn c. Payments on account, $44,000 Date Accounts Debit Credit C. Accounts Payable 44000 Cash 44000 d. Materials purchased on credit: Paper, $23,300; indirect materials, $4,900 (Prepare a single journal entry for this event.) Date Accounts Debit Credit d. 28200 Raw Materials Inventory Accounts Payable 28200 e. Materials requisitioned and used in production: Job 120: Paper, $600, Job 121: Paper, $7,600, Indirect materials, $1,600 (Prepare a single journal entry for this event.) Date Accounts Debit Credit e. Work-in-Process Inventory Manufacturing Overhead Raw Materials Inventory f. Wages incurred during June, $41,000. Labor time records for the month: Job 120, $3,700; Job 121, $17,250; indirect labor, $20,050 (Prepare a single journal entry for this event.) Date Accounts Debit Credit f. Work-in-Process Inventory Manufacturing Overhead Wages Payable g. Wages paid in June include the balance in the Wages Payable account at May 31 plus $38,000 of wages incurred in June. Date Accounts Debit Credit g. Wages Payable Cash h. Depreciation on plant and equipment, $3,100 Date Accounts Debit Credit h. Manufacturing Overhead Accumulated Depreciation i. Manufacturing overhead was allocated at the predetermined overhead allocation rate of 50% of direct labor costs. Date Accounts Debit Credit i. Work-in-Process Inventory Manufacturing Overhead j. Jobs completed during the month: Job 120, 100,000 Large Stars at total cost of $45,650 Date Accounts Debit Credit j. Finished Goods Inventory Work-in-Process Inventory k. Sales on account: all of Job 120 for $133,000 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 k. Accounts Receivable Sales Revenue Now record the cost of goods sold related to the sale of all of Job 120. Date Accounts Debit Credit k. Cost of Goods Sold Finished Goods Inventory I. Adjusted for overallocated or underallocated manufacturing overhead. Date Accounts Debit Credit 1. Cost of Goods Sold Manufacturing Overhead Requirement 2. T-accounts for the general ledger, the Raw Materials Inventory subsidiary ledger, the Work-in-Process Inventory subsid balance as given. Post the journal entries to the T-accounts using the transaction letters as a reference. Begin with posting the transactions to the general ledger accounts. Key each transaction by transaction letter, and calculate the ending transaction. For accounts with a zero balance, enter a "0" along with a "Bal." reference on the normal side of the T-account.) Review the journal entries you prepared in Requirement 1. Cash Accounts Receivable Raw Materials Inventory Bal. 25,000 |(b) Bal. 190,000 (a) Bal. 5,700 (e) (a) (c) |(k) (d) (9) Bal. Bal. Bal. Work-in-Process Inventory 39,500 10) Property, Plant, and Equipment 270,000 Bal. Finished Goods Inventory Bal. 20,000 (k) (0) Bal. (e) (f) (0) Bal. Bal. Bal. Accumulated Depreciation Accounts Payable Wages Payable (c) (g) 71,000 Bal. (h) 128,000 Bal. (d) 1,700 Bal. (f) Un IN Inn Common Stock Retained Earnings Sales Revenue 142,000 Bal. 207,500 Bal. (k) Bal. Bal. Bal. Cost of Goods Sold Selling and Admin. Expenses (k) (e) Manufacturing Overhead (0) (1) (b) (1) (f) (h) but ID Post the transactions to the Raw Materials Inventory subsidiary ledger accounts. Key each transa Paper Indirect Materials Bal. 4,900 (e) 800 (e) Bal. (d) (d) Bal. Bal. Job 120 Job 121 Bal. 39,500 () (e) (f) (f) (i) V (0) Bal. 0 Bal. Post the transactions to the Finished Goods Inventory subsidiary ledger accounts. Key each transaction by Large stars Small stars Bal. 9,100 (k) Bal. 10,900 (i) School Stars Trial Balance June 30, 2018 Balance Account Title Debit Credit Cash Accounts Receivable Inventories: Raw Materials Work-in-Process Finished Goods Property, Plant and Equipment Accumulated Depreciation Accounts Payable Wages Payable Common Stock Retained Earnings Sales Revenue Cost of Goods Sold Manufacturing Overhead Selling and Administrative Expenses Total School Stars Schedule of Cost of Goods Manufactured Month Ended June 30, 2018 Beginning Work-in-process Inventory Direct Materials Used Direct Labor Manufacturing Overhead Allocated Total Manufacturing Costs Incurred during the Month Total Manufacturing Costs to Account for III Ending Work-in-Process Inventory Cost of Goods Manufactured . Income Statement Month Ended June 30, 2018 Sales Revenue Cost of Goods Sold: Beginning Finished Goods Inventory Cost of Goods Manufactured Cost of Goods Available for Sale Ending Finished Goods Inventory Cost of Goods Sold Before Adjustment Adjustment for Underallocated Overhead Cost of Goods Sold II Gross Profit School Stars Trial Balance June 1, 2018 Balance Account Title Debit Credit Cash $ 25,000 Accounts Receivable 190,000 Inventories: Raw Materials 5,700 Work-in-Process 39,500 20,000 Finished Goods 270,000 Property, Plant, and Equipment Accumulated Depreciation $ 71,000 Accounts Payable 128,000 X i More Info Raw Materials Inventory subsidiary ledger: Paper, $4,900; indirect materials, $800 Work-in-Process Inventory subsidiary ledger: Job 120, $39,500; Job 121, $0 Finished Goods Inventory subsidiary ledger: Large Stars, $9,100; Small Stars, $10,900 Print Done a. Collections on account, $154,000. b. Selling and administrative expenses incurred and paid, $30,000. c. Payments on account, $44,000. d. Materials purchased on account: Paper, $23,300; indirect materials, $4,900. e. Materials requisitioned and used in production: $ 600 Job 120: Paper Job 121: Paper $ 7,600 Indirect materials, $ 1,600 f. Wages incurred during June, $41,000. Labor time records for the month: Job 120, $3,700; Job 121, $17,250; indirect labor, $20,050. g. Wages paid in June include the balance in the Wages Payable at May 31 plus $38,000 of wages incurred during June. h. Depreciation on plant and equipment, $3,100. i. Manufacturing overhead allocated at the predetermined overhead allocation rate of 50% of direct labor costs. j. Jobs completed during the month: Job 120 with 100,000 Large Stars at a total cost of $45,650. k. Sales on account: all of Job 120 for $133,000. I. Adjusted for overallocated or underallocated manufacturing overhead