Specialist Inc. trial balance as of January 1, 20xx, the beginning of the current year, is given 80,000 130,000 below: Cash Accounts Receivable Inventories: Raw Materials Work in Process Finished Goods Prepaid Insurance Plant and Equipment Accumulated Depreciation Accounts Payable Salaries and Wages Payable Accrued Expense 70,000 180,000 200,000 40,000 2,300,000 420,000 300,000 0 0 1,500,000 780,000 0 0 Capital Stock Retained Earnings Sales Cost of Sales Factory Overhead - Control Factory Overhead - Applied Expense - Administrative Expense - Selling Total 0 0 - 0 0 3,000,000 3,000,000 Specialist Inc. manufactures items to customers' specifications and employs a job-order cost system. During the year, the following transactions took place: a. Raw materials purchased on account, P400,000. b. Raw materials requisitioned for use in production, P400,000 (80% direct and 20% indirect) c. Factory utility costs incurred, all on account, P102,000, d. Depreciation recorded on plant and equipment, P280,000. (80% relates to factory operations, and 5% to selling operations and 15% to administrative activities). 333 Direct labor Indirect labor e. Costs of salaries and wages incurred and unpaid are as follows: 400,000 180,000 Sales commissions 104,000 Administrative salaries 250,000 f. Prepaid insurance expired during the year, P30,000 (80% relates to factory operations, 10% to selling, and 10% to administrative activities). g. Accrued miscellaneous selling and administrative expenses, P10,000 and P8,000 respectively h. Manufacturing overhead was applied to production. The company applies overhead on the basis of 150% of direct labor cost. i. Goods costing P1,400,000 to manufacture were transferred to the finished goods warehouse j Goods that had cost P1,500,000 to manufacture were sold on account for P2,500,000. k. Collections from customers during the year totaled P2,170,000. 1. Payments to suppliers on account during the year, P700,000; and payments to employees for salaries and wages, P900,000. Required: 1. Prepare T-account general ledgers for each account in the corporation's trial balance, and enter the opening balances. 2. Record/post the transactions in the T-account general ledgers. 3. Make an entry in the T-account to close any balance in the Factory Overhead account/s to Cost of Goods Sold 4. Prepare the following: Statement of Income Statement of Changes in Equity Statement of Financial Position for the year ended / as at December 31, 20xx. (Do not prepare a schedule of cost of - goods manufactured; all of the information needed for the statement of income is available in the general ledgers you have prepared.) 5. Prepare/post closing entries. 21 6. Prepare Post-closing trial balance