Opening Balances:

Cash - $2,000

Account Receivable - $5,000

Materials - $3,000

Working Progress - $10,000

Finished Goods - $7,000

Equipment - $50,000

Furniture - $12,000

Account Payable - $2,500

Common Stock - $30,000

Retain Earnings - $56,500

1. $70,000 of direct materials are purchased on credit and taken to the warehouse.

2. $67,000 of materials are used in the manufacture of the products.

3. $20,000 is paid for wages and salaries to production employees.

4. $38,000 is paid for salaries to employees working in the sales and administrative areas.

5. $5,000 is paid for the purchase of furniture that will be used in the sales and administrative office.

6. The depreciation of the company's furniture, including that acquired for the offices in event 5, is recognized. The annual depreciation charge is $1,500.

7. $4,000 is paid for manufacturing equipment.

8. The depreciation of the company's manufacturing equipment, including that acquired at event 7, is recognized. The annual depreciation charge is $3,200.

9. $8,000 of indirect manufacturing costs are recognized; $2,400 were paid in cash and $5,600 went on credit.

10. Finished units are transferred to the warehouse for the amount of $102,000.

11. $4,300 is paid for advertising and other promotional expenses.

12. Merchandise sold to customers for $160,000; $64,000 in cash and $96,000 in credit.

13. The inventory sold in transactions 12 had a cost of $98,000.

14. $90,000 is received from customers who have purchased on credit.

15. $75,000 is paid to creditors.

Required: Record transactions, 1 through 15 in the attached Balance Sheet.

Traasactian Cash Stockholder's Cash