Paradise Company manufactures its product through two manufacturing processes: Assembly and Finishing. The company uses a process cost accounting system. Prepare the journal entries for the following transactions using the Chart of Accounts:

Accounting Transactions

No.	Transactions
1.	Purchased $93,000 of raw materials on account.
2.	Finished goods costing $130,000 were sold for $200,000 cash.

Chart of Accounts

Assets	Liabilities	Stockholders' Equity
Cash	Accounts Payable	Common Stock
Accounts Receivable	Unearned Revenue	Retained Earnings
Raw Materials Inventory	Factory Wages Payable	Sales Revenue
Work in Process Inventory-Assembly	Notes Payable	Cost of Goods Sold
Work in Process Inventory-Finishing	Employer Payroll Taxes Payable	Selling Expense
Factory Labor	Employer Fringe Benefits Payable	Supplies Expense
Manufacturing Overhead	Taxes Payable	Utilities Expense
Finished Goods Inventory	Interest Payable	Depreciation Expense
Supplies		Insurance Expense
Prepaid Insurance
Equipment
Building
Land
Accumulated Depreciation

• List debit transactions first and then list credit transactions.
• Use accounts provided in the Chart of Accounts above. Do NOT create your own account. Do NOT use any abbreviations.
• When typing your responses, do NOT include a dollar sign. For example, if your answer is $10,000, you should be typing 10,000 or 10,000.00 without any dollar sign.

General Journals

Account Titles and Explanation	Debit ($)	Credit ($)
To record purchase of raw materials
To record sale of merchandise
To record cost of merchandise sold