The following accounting events affected Nelson Manufacturing Company during its first three years of operation Assume that all transactions are cash transactions Transactions for 2013 1 Started manufacturing company by issuing common stock for $3,200 2 Purchased $1,270 of direct raw materials 3 Used $770 of direct raw materials to produce inventory 4 Paid $360 of direct labor wages to employees to make inventory 5 Applied $320 of manufacturing overhead cost to Work in Process Inventory 6 Finished work on inventory that cost $920 7 Sold goods that cost $610 for $1,120 8 Paid $320 for selling and administrative expenses 9 Actual manufacturing overhead cost amounted to $210 for the year Transactions for 2014 1 Acquired additional $1,800 of cash from common stock 2 Purchased $1,230 of direct raw materials 3 Used $1,200 of direct raw materials to produce inventory 4 Paid $510 of direct labor wages to employees to make inventory 5 Applied $290 of manufacturing overhead cost to Work in Process Inventory 6 Finished work on inventory that cost $1,860 7 Sold goods that cost $1,590 for $2,880 8 Paid $490 for selling and administrative expenses 9 Actual manufacturing overhead cost amounted to $350 for the year Transactions for 2015 1 Paid a cash dividend of $700 2 Purchased $1,500 of direct raw materials 3 Used $1,160 of direct raw materials to produce inventory 4 Paid $350 of direct labor wages to employees to make inventory 5 Applied $300 of manufacturing overhead cost to work in process 6 Finished work on inventory that cost $2,010 7 Sold goods that cost $2,340 for $3,540 8 Paid $620 for selling and administrative expenses 9 Annual manufacturing overhead costs were $280 for the year Record the preceding events in a horizontal statements model Close overapplied or underapplied overhead to Cost of Goods Sold Close appropriate accounts for 2013, 2014 and 2015 In year 2013 first event is shown as an example (Enter decreases to account balances with a minus sign ) Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet as of the close of business on December 31, 2013, 2014 and 2015

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The following accounting events affected Nelson Manufacturing Company during its first three years of operation. Assume that all transactions are cash transactions. Transactions for 2013

The following accounting events affected Nelson Manufacturing Company during its first three years of operation. Assume that all transactions are cash transactions.

Transactions for 2013

1.	Started manufacturing company by issuing common stock for $3,200.
2.	Purchased $1,270 of direct raw materials.
3.	Used $770 of direct raw materials to produce inventory.
4.	Paid $360 of direct labor wages to employees to make inventory.
5.	Applied $320 of manufacturing overhead cost to Work in Process Inventory.
6.	Finished work on inventory that cost $920.
7.	Sold goods that cost $610 for $1,120.
8.	Paid $320 for selling and administrative expenses.
9.	Actual manufacturing overhead cost amounted to $210 for the year.

Transactions for 2014

1.	Acquired additional $1,800 of cash from common stock.
2.	Purchased $1,230 of direct raw materials.
3.	Used $1,200 of direct raw materials to produce inventory.
4.	Paid $510 of direct labor wages to employees to make inventory.
5.	Applied $290 of manufacturing overhead cost to Work in Process Inventory.
6.	Finished work on inventory that cost $1,860.
7.	Sold goods that cost $1,590 for $2,880.
8.	Paid $490 for selling and administrative expenses.
9.	Actual manufacturing overhead cost amounted to $350 for the year.

Transactions for 2015

1.	Paid a cash dividend of $700.
2.	Purchased $1,500 of direct raw materials.
3.	Used $1,160 of direct raw materials to produce inventory.
4.	Paid $350 of direct labor wages to employees to make inventory.
5.	Applied $300 of manufacturing overhead cost to work in process.
6.	Finished work on inventory that cost $2,010.
7.	Sold goods that cost $2,340 for $3,540.
8.	Paid $620 for selling and administrative expenses.
9.	Annual manufacturing overhead costs were $280 for the year.

Record the preceding events in a horizontal statements model. Close overapplied or underapplied overhead to Cost of Goods Sold. Close appropriate accounts for 2013, 2014 and 2015. In year 2013 first event is shown as an example. (Enter decreases to account balances with a minus sign.)

	Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet as of the close of business on December 31, 2013, 2014 and 2015.