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Star Videos, Incorporated, produces short musical videos for sale to retail outlets. The companys balance sheet accounts as of January 1 are given below. Star
Star Videos, Incorporated, produces short musical videos for sale to retail outlets. The companys balance sheet accounts as of January 1 are given below. Star Videos, Incorporated Balance Sheet January 1 Assets Cash $ 92,000 Accounts receivable 115,600 Inventories: Raw materials (film, costumes) $ 17,800 Videos in process 60,200 Finished videos awaiting sale 91,200 169,200 Prepaid insurance 12,600 Studio and equipment (net) 603,000 Total assets $ 992,400 Liabilities and Stockholders Equity Accounts payable $ 211,000 Retained earnings 781,400 Total liabilities and stockholders equity $ 992,400 Because the videos differ in length and complexity of production, the company uses a job-order costing system to determine the cost
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