Stuart Corporation makes custom$-$order furniture to meet the needs of persons with disabilities. On January $1,$ Year $2,$ the company had the following account balances: $$87,000$ for both cash and common stock. In Year $2,$ Stuart worked on three jobs. The relevant direct operating costs follow. Stuart$$s predetermined manufacturing overhead rate was $$0\mathrm{.}40$ per direct labor dollar. Actual manufacturing overhead costs amounted to $$5,862.$ Stuart paid cash for all costs. The company completed and delivered Jobs $1$ and $2$ to customers during the year. Job $3$ was incomplete at the end of the year. The company sold Job $1$ for $$16,200$ cash and Job $2$ for $$8,200$ cash. Stuart also paid $$3,200$ cash for selling and administrative expenses for the year.

Stuart uses a just$-$in$-$time inventory management system. Consequently, it does not have raw materials inventory. Raw materials purchases are recorded directly in the Work in Process Inventory account.

Required

Record the preceding events in a horizontal statements model. The first row shows beginning balances.

Record the entry to close the amount of underapplied or overapplied overhead for the year to Cost of Goods Sold $($in the expense category$)$ in the horizontal financial statements model.

Determine the gross margin for the year.

The picture attached is an example of the table that corresponds with answering part a$,)$ and b$.).$ In the table for my question $87,000$ is in the cash and common stock box's not the $50,000$ seen in picture provided.