QUESTION 3 Heaven signed an agreement for a cell phone on account O Debit Accounts Payable Credit S A Expenses $50 O Debit Cash Credit S A Expenses $50 O Debit S A Expenses Credit Cash $50 O Debit S A Expenses Credit Accounts Payable $50 O Debit Cash Credit Accounts Payable $50 O Debit Accounts Payable Credit Cash $50 O Debit Manufacturing Overhead Credit Cash $50 O Debit Cash Credi O Debit Manufacturing Overhead Credit Accounts Payable $50 O Debit Accounts Payable Credit Manufacturing Overhead $50 t Manufacturing Overhead s50 TABLE 1 COST INFORMATION Standard $6,000 (depreciated over 5 er Cake years on a Straight Line basis No salvage value) Cost Item and Ingredients Conventional oven 0 (provided by the landlord) 0 (paid for by dad) $24 per 8 pounds bag $2 per dozen $15 per 25 pounds bag $6 per 14 pounds box Refrigerator Baking pans, licenses Baking flour n a 4 1 pound Sugar Baking soda Butter Raisins 1 pound $8 per 2 pounds Others (currants, diced date, nutmeg, molasses) Cash Register s30 for all 4 $12 per month (rental for 2 years) $12 per bottle quarter of bottle Rum (alcohol) Utilities (includes gas, electric $50 per month and water) Mobile phone (business) $50 per month Salary nieces Salary aunt Accountant Rent Estimated MOH $8 per hour $100 per month $100 per month $600 per month $4 00 per cake 1 person 1 5 hours per cake Cake Table 3 Heavenly Creations Entries Journal Entries for the Month Heaven invested $10,000 in cash into Heavenly Creations Heaven bought indirect ingredients for the cakes in the amount of $2,279 and indirect ingredients in the amount of $150 on account Heaven signed an agreement for a cell phone on account Heaven signed a rental agreement on account for a cash register Heaven purchased a new oven and paid cas h Heaven paid her vendors for the cake ingredients bought on account Heaven started using the direct materials to make cakes Recognized payable for Brianna and Alexis direct wages Recognized payable for Heaven's first month of salary Recognized Aunt Ellen wages for supervising nieces Recognized Professor's fee for accounting work Apply Manufacturing Overhead to Production Paid payables for cash register and phone January 2 2 0 3 5 28 28 28 28 28 29 29 29 29 30 31 Recorded completion of cakes that are available for sale Recorded Cash Sale of Cakes Record Payment of Indirect Product Cost Utilities and Rent Paid Labor for Month Recorded Depreciation of Oven Recorded MOH Allocation Adjustment Recorded Raw Material Inventory Adjustment 31 31 mTrans actions (Assignment 3) Heaven spent the month of December talking to various the information in Table 1 suppliers in order to determine her cost structure She added cost data to placed an initial deposit of $10,000 of business used 200 in Heavenly Creations, Inc opened for business on January 1, 201X as planned and Heaven cash into the business First, Heaven made a purchase to stock her inventory ve ingredients and $150 of indirect ingredients on account for rchased $2,279 of direct the cakes the month of January dozen eggs and had 4 bad eggs to dispose of during the month 20 baking soda boxes, to production at 4 dollars per cake Heaven paid cash for the purchase of the oven and all the 200 pounds of butter, 100 pounds of raisins, 50 bottles of rum, and the other ingredients (one box of each for a total of four) salaries Her nieces worked 300 hours in total for the month Januar cakes and sold all for cash The average selling price was $50 per cake y was a very good month for the bakery since it baked 200 All manufacturing overhead is closed out at month end level valued at zero at month end er Was paid in full at month end Heaven's Raw Material physical periodic inventory count resulted in an Inventory Required Use Table 3 to record and post the Heavenly Creations, Inc January transactions using the General Journal and the provided T accounts (round all calculations to 2 decimal places) All other costs such as utilities, must be accounted for in the T accounts provided (assume such transactions where applicable, are paid in cash) Table 4 shows the Chart of Accounts for Heavenly Creations, Inc QUESTION 3 Heaven signed an agreement for a cell phone on account O Debit Accounts Payable Credit S A Expenses $50 O Debit Cash Credit S A Expenses $50 O Debit S A Expenses Credit Cash $50 O Debit S A Expenses Credit Accounts Payable $50 O Debit Cash Credit Accounts Payable $50 O Debit Accounts Payable Credit Cash $50 O Debit Manufacturing Overhead Credit Cash $50 O Debit Cash Credi O Debit Manufacturing Overhead Credit Accounts Payable $50 O Debit Accounts Payable Credit Manufacturing Overhead $50 t Manufacturing Overhead s50 TABLE 1 COST INFORMATION Standard $6,000 (depreciated over 5 er Cake years on a Straight Line basis No salvage value) Cost Item and Ingredients Conventional oven 0 (provided by the landlord) 0 (paid for by dad) $24 per 8 pounds bag $2 per dozen $15 per 25 pounds bag $6 per 14 pounds box Refrigerator Baking pans, licenses Baking flour n a 4 1 pound Sugar Baking soda Butter Raisins 1 pound $8 per 2 pounds Others (currants, diced date, nutmeg, molasses) Cash Register s30 for all 4 $12 per month (rental for 2 years) $12 per bottle quarter of bottle Rum (alcohol) Utilities (includes gas, electric $50 per month and water) Mobile phone (business) $50 per month Salary nieces Salary aunt Accountant Rent Estimated MOH $8 per hour $100 per month $100 per month $600 per month $4 00 per cake 1 person 1 5 hours per cake Cake Table 3 Heavenly Creations Entries Journal Entries for the Month Heaven invested $10,000 in cash into Heavenly Creations Heaven bought indirect ingredients for the cakes in the amount of $2,279 and indirect ingredients in the amount of $150 on account Heaven signed an agreement for a cell phone on account Heaven signed a rental agreement on account for a cash register Heaven purchased a new oven and paid cas h Heaven paid her vendors for the cake ingredients bought on account Heaven started using the direct materials to make cakes Recognized payable for Brianna and Alexis direct wages Recognized payable for Heaven's first month of salary Recognized Aunt Ellen wages for supervising nieces Recognized Professor's fee for accounting work Apply Manufacturing Overhead to Production Paid payables for cash register and phone January 2 2 0 3 5 28 28 28 28 28 29 29 29 29 30 31 Recorded completion of cakes that are available for sale Recorded Cash Sale of Cakes Record Payment of Indirect Product Cost Utilities and Rent Paid Labor for Month Recorded Depreciation of Oven Recorded MOH Allocation Adjustment Recorded Raw Material Inventory Adjustment 31 31 mTrans actions (Assignment 3) Heaven spent the month of December talking to various the information in Table 1 suppliers in order to determine her cost structure She added cost data to placed an initial deposit of $10,000 of business used 200 in Heavenly Creations, Inc opened for business on January 1, 201X as planned and Heaven cash into the business First, Heaven made a purchase to stock her inventory ve ingredients and $150 of indirect ingredients on account for rchased $2,279 of direct the cakes the month of January dozen eggs and had 4 bad eggs to dispose of during the month 20 baking soda boxes, to production at 4 dollars per cake Heaven paid cash for the purchase of the oven and all the 200 pounds of butter, 100 pounds of raisins, 50 bottles of rum, and the other ingredients (one box of each for a total of four) salaries Her nieces worked 300 hours in total for the month Januar cakes and sold all for cash The average selling price was $50 per cake y was a very good month for the bakery since it baked 200 All manufacturing overhead is closed out at month end level valued at zero at month end er Was paid in full at month end Heaven's Raw Material physical periodic inventory count resulted in an Inventory Required Use Table 3 to record and post the Heavenly Creations, Inc January transactions using the General Journal and the provided T accounts (round all calculations to 2 decimal places) All other costs such as utilities, must be accounted for in the T accounts provided (assume such transactions where applicable, are paid in cash) Table 4 shows the Chart of Accounts for Heavenly Creations, Inc

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QUESTION 3 Heaven signed an agreement for a cell phone on account O Debit Accounts Payable  Credit S A Expenses $50 O Debit Cash  Credit S A Expenses $50 O Debit S A Expenses  Credit Cash $50 O Debit S A Expenses  Credit Accounts Payable $50 O Debit Cash  Credit Accounts Payable $50 O Debit Accounts Payable  Credit Cash $50 O Debit Manufacturing Overhead  Credit Cash $50 O Debit Cash  Credi O Debit Manufacturing Overhead  Credit Accounts Payable $50 O Debit Accounts Payable  Credit Manufacturing Overhead $50 t Manufacturing Overhead s50 TABLE 1  COST INFORMATION Standard $6,000 (depreciated over 5 er Cake years on a Straight Line basis No salvage value) Cost Item and Ingredients Conventional oven 0 (provided by the landlord) 0 (paid for by dad) $24 per 8 pounds bag $2 per dozen $15 per 25 pounds bag $6 per 14 pounds box Refrigerator Baking pans, licenses Baking flour n a 4 1 pound Sugar Baking soda Butter Raisins 1 pound $8 per 2 pounds Others (currants, diced date, nutmeg, molasses) Cash Register s30 for all 4 $12 per month (rental for 2 years) $12 per bottle quarter of bottle Rum (alcohol) Utilities (includes gas, electric $50 per month and water) Mobile phone (business) $50 per month Salary  nieces Salary aunt Accountant Rent Estimated MOH $8 per hour $100 per month $100 per month $600 per month $4 00 per cake 1 person 1 5 hours per cake Cake Table 3  Heavenly Creations Entries Journal Entries for the Month Heaven invested $10,000 in cash into Heavenly Creations Heaven bought indirect ingredients for the cakes in the amount of $2,279 and indirect ingredients in the amount of $150 on account Heaven signed an agreement for a cell phone on account Heaven signed a rental agreement on account for a cash register Heaven purchased a new oven and paid cas h Heaven paid her vendors for the cake ingredients bought on account Heaven started using the direct materials to make cakes Recognized payable for Brianna and Alexis direct wages Recognized payable for Heaven's first month of salary Recognized Aunt Ellen wages for supervising nieces Recognized Professor's fee for accounting work Apply Manufacturing Overhead to Production Paid payables for cash register and phone January 2 2 0 3 5 28 28 28 28 28 29 29 29 29 30 31 Recorded completion of cakes that are available for sale Recorded Cash Sale of Cakes Record Payment of Indirect Product Cost  Utilities and Rent Paid Labor for Month Recorded Depreciation of Oven Recorded MOH Allocation Adjustment Recorded Raw Material Inventory Adjustment 31 31 mTrans actions (Assignment  3) Heaven spent the month of December talking to various the information in Table 1 suppliers in order to determine her cost structure  She added cost data to placed an initial deposit of $10,000 of business used 200 in Heavenly Creations, Inc opened for business on January 1, 201X as planned and Heaven cash into the business  First, Heaven made a purchase to stock her inventory ve ingredients and $150 of indirect ingredients on account for rchased $2,279 of direct the cakes  the month of January dozen eggs and had 4 bad eggs to dispose of during the month  20 baking soda boxes, to production at 4 dollars per cake  Heaven paid cash for the purchase of the oven and all the 200 pounds of butter, 100 pounds of raisins, 50 bottles of rum, and the other ingredients (one box of each for a total of four)  salaries  Her nieces worked 300 hours in total for the month  Januar cakes and sold all for cash  The average selling price was $50 per cake  y was a very good month for the bakery since it baked 200 All manufacturing overhead is closed out at month end  level valued at zero at month end  er Was paid in full at month end  Heaven's Raw Material physical periodic inventory count resulted in an Inventory Required  Use Table 3 to record and post the Heavenly Creations, Inc  January transactions using the General Journal and the provided T accounts (round all calculations to 2 decimal places) All other costs such as utilities, must be accounted for in the T  accounts provided (assume such transactions where applicable, are paid in cash)  Table 4 shows the Chart of Accounts for Heavenly Creations, Inc  QUESTION 3 Heaven signed an agreement for a cell phone on account O Debit Accounts Payable  Credit S A Expenses $50 O Debit Cash  Credit S A Expenses $50 O Debit S A Expenses  Credit Cash $50 O Debit S A Expenses  Credit Accounts Payable $50 O Debit Cash  Credit Accounts Payable $50 O Debit Accounts Payable  Credit Cash $50 O Debit Manufacturing Overhead  Credit Cash $50 O Debit Cash  Credi O Debit Manufacturing Overhead  Credit Accounts Payable $50 O Debit Accounts Payable  Credit Manufacturing Overhead $50 t Manufacturing Overhead s50 TABLE 1  COST INFORMATION Standard $6,000 (depreciated over 5 er Cake years on a Straight Line basis No salvage value) Cost Item and Ingredients Conventional oven 0 (provided by the landlord) 0 (paid for by dad) $24 per 8 pounds bag $2 per dozen $15 per 25 pounds bag $6 per 14 pounds box Refrigerator Baking pans, licenses Baking flour n a 4 1 pound Sugar Baking soda Butter Raisins 1 pound $8 per 2 pounds Others (currants, diced date, nutmeg, molasses) Cash Register s30 for all 4 $12 per month (rental for 2 years) $12 per bottle quarter of bottle Rum (alcohol) Utilities (includes gas, electric $50 per month and water) Mobile phone (business) $50 per month Salary  nieces Salary aunt Accountant Rent Estimated MOH $8 per hour $100 per month $100 per month $600 per month $4 00 per cake 1 person 1 5 hours per cake Cake Table 3  Heavenly Creations Entries Journal Entries for the Month Heaven invested $10,000 in cash into Heavenly Creations Heaven bought indirect ingredients for the cakes in the amount of $2,279 and indirect ingredients in the amount of $150 on account Heaven signed an agreement for a cell phone on account Heaven signed a rental agreement on account for a cash register Heaven purchased a new oven and paid cas h Heaven paid her vendors for the cake ingredients bought on account Heaven started using the direct materials to make cakes Recognized payable for Brianna and Alexis direct wages Recognized payable for Heaven's first month of salary Recognized Aunt Ellen wages for supervising nieces Recognized Professor's fee for accounting work Apply Manufacturing Overhead to Production Paid payables for cash register and phone January 2 2 0 3 5 28 28 28 28 28 29 29 29 29 30 31 Recorded completion of cakes that are available for sale Recorded Cash Sale of Cakes Record Payment of Indirect Product Cost  Utilities and Rent Paid Labor for Month Recorded Depreciation of Oven Recorded MOH Allocation Adjustment Recorded Raw Material Inventory Adjustment 31 31 mTrans actions (Assignment  3) Heaven spent the month of December talking to various the information in Table 1 suppliers in order to determine her cost structure  She added cost data to placed an initial deposit of $10,000 of business used 200 in Heavenly Creations, Inc opened for business on January 1, 201X as planned and Heaven cash into the business  First, Heaven made a purchase to stock her inventory ve ingredients and $150 of indirect ingredients on account for rchased $2,279 of direct the cakes  the month of January dozen eggs and had 4 bad eggs to dispose of during the month  20 baking soda boxes, to production at 4 dollars per cake  Heaven paid cash for the purchase of the oven and all the 200 pounds of butter, 100 pounds of raisins, 50 bottles of rum, and the other ingredients (one box of each for a total of four)  salaries  Her nieces worked 300 hours in total for the month  Januar cakes and sold all for cash  The average selling price was $50 per cake  y was a very good month for the bakery since it baked 200 All manufacturing overhead is closed out at month end  level valued at zero at month end  er Was paid in full at month end  Heaven's Raw Material physical periodic inventory count resulted in an Inventory Required  Use Table 3 to record and post the Heavenly Creations, Inc  January transactions using the General Journal and the provided T accounts (round all calculations to 2 decimal places) All other costs such as utilities, must be accounted for in the T  accounts provided (assume such transactions where applicable, are paid in cash)  Table 4 shows the Chart of Accounts for Heavenly Creations, Inc

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QUESTION 3 Heaven signed an agreement for a cell phone on account O Debit Accounts Payable; Credit S&A Expenses $50 O Debit Cash: Credit S&A

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