Perez Construction Company began operations on January 1, 2019, when it acquired $20,000 cash from the issuance of common stock. During the year, Perez purchased $2,700 of direct raw materials and used $2,500 of the direct materials. There were 114 hours of direct labor worked at an average rate of $7 per hour paid in cash. The predetermined overhead rate was $2.00 per direct labor hour. The company started construction on three prefabricated buildings. The job cost sheets reflected the following allocations of costs to each building:

	Direct Materials			Direct Labor Hours
Job 1	$	500		30
Job 2		1,000		54
Job 3		1,000		30

The company paid $68 cash for indirect labor costs. Actual overhead cost paid in cash other than indirect labor was $150. Perez completed Jobs 1 and 2 and sold Job 1 for $1,430 cash. The company incurred $150 of selling and administrative expenses that were paid in cash. Over- or underapplied overhead is closed to Cost of Goods Sold.

Required (Please do NOT handwrite)

1. Record the preceding events in a horizontal statements model. The first event for 2019 has been recorded as an example.

2. Reconcile all subsidiary accounts with their respective control accounts.

3. Record the closing entry for over- or underapplied manufacturing overhead in the horizontal statements model, assuming that the amount is insignificant.

4. Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet for 2019.

Req D CGM Req A toC Req D Inc Stm Req D Bal Sheet Record the preceding events in a horizontal statements model. Reconcile all subsidiary accounts with their respective control accounts. Record the closing entry for over- or underapplied manufacturing overhead in the horiz assuming that the amount is insignificant. The first event for 2019 has been recorded as an example. (Enter costs of each job individually. Enter any decreases to account balances with a minus sign.) Assets Equity Raw Materials Work In Process Finished Goods common Stock Retained Earnings Cash+Manufacturing RevenueExpenses Net Income Overheac 20,000 0 0 0 20,000 0 0 0 Req A to C Req D CGM Sched > Req D CGM Sched Req Ato C Req D Inc Stmt Req D Bal Sheet Prepare a schedule of cost of goods manufactured and sold for 2019 PEREZ CONSTRUCTION COMPANY Cost of Goods Manufactured and Sold for 2019 Raw materials available Raw materials used Total manufacturing costs Total work in process inventory Cost of goods manufactured Goods available for sale Cost of goods sold AtoC Req D CGM Req D Inc Stmt Req D Bal Sheet Sched Prepare an income statement for 2019. PEREZ CONSTRUCTION COMPANY Income Statement for 2019 0 Req D CGM Sched Req D Inc StmtReq D Bal Sheet Req A to C Prepare a balance sheet for 2019. PEREZ CONSTRUCTION COMPANY Balance Sheet for 2019 Assets Total assets Equity Total equity 0