Prepare the necessary journal entries to record the transactions below. Use the charge of accounts shown in Table 1.

The information below reflects production and sales transactions for February 2011. Do not consider beginning or ending balances. The company uses one overhead account, closing it at the end of the month to the work in process inventory. You may assume that there are no raw materials or work in process inventories at the begining or end of the month. THe company uses actual costing to account for overhead, not normal or standard costing. You may ignore withholding and taxes on all payroll-related entries.

Production buys the necessary fill and fabric for the month. All raw materials are immediately placed into production.

Administrative salaries are paid, $15,000.00

Rent on the production building totaled $75,000. $10,000 of the total rent paid is considered to be for the administratove offices.

Wages of $960,000 for cutters and finishers.

Finishers' supervisors are paid $10,000.

Buttons, thread and beads used to finish the toys are purcharsed with cash: $24,000. The company lacks the technology to trace these small items to the toys being produced.

$12,000 in monthly depreciation on production equipment is recorded.

$10,000 in depreciation on the administrative and sales equipment, vehicles, etc. is recorded for the month.

120,000 toys were completed in January. Overhead expenses are closed to Work in Process inventory.

Cash sales of 50,000 toys totaling $750,000 are booked.

Assets Cash Prepaid Insurance Inventory: administration Inventory: animal food Inventory: concession Inventory: finished goods Inventory: raw materials Inventory: water chemicals Inventory: water saline Inventory: work in process Manufacturing Overhead Building and Equipment Land	Liabilities Accounts payable Interest payable Notes payable Stockholders' equity Stock Retained earnings Income summary
Income Admission Revenues Concession Sales Plush Toy Sales	Expenses Cost of goods sold Animal food expense Depreciation expense Insurance expense Interest expense Maintenance expense Salaries expense Selling & administrative expense Utilities expense Water treatment expense