The following accounting events affected Rooney Manufacturing Company during its first three years of operation. Assume that all transactions are cash transactions. Transactions for 2017 1. Started manufacturing company by issuing common stock for $3,600. 2. Purchased $1,300 of direct raw materials. 3. Used $770 of direct raw materials to produce inventory. 4. Paid $400 of direct labor wages to employees to make inventory. 5. Applied $330 of manufacturing overhead cost to Work in Process Inventory. 6. Finished work on inventory that cost $980. 7. Sold goods that cost $670 for $1,190. 8. Paid $390 for selling and administrative expenses. 9. Actual manufacturing overhead cost amounted to $215 for the year. Transactions for 2018 1. Acquired additional $900 of cash from common stock. 2. Purchased $1,220 of direct raw materials. 3. Used $1,240 of direct raw materials to produce inventory. 4. Paid $520 of direct labor wages to employees to make inventory. 5. Applied $300 of manufacturing overhead cost to Work in Process Inventory. 6. Finished work on inventory that cost $1,850. 7. Sold goods that cost $1,530 for $2,900. 8. Paid $460 for selling and administrative expenses. 9. Actual manufacturing overhead cost amounted to $330 for the year. Transactions for 2019 1. Paid a cash dividend of $700. 2. Purchased $1,400 of direct raw materials. 3. Used $1,180 of direct raw materials to produce inventory. 4. Paid $370 of direct labor wages to employees to make inventory. 5. Applied $310 of manufacturing overhead cost to work in process. 6. Finished work on inventory that cost $2,000. 7. Sold goods that cost $2,310 for $3,590. 8. Paid $640 for selling and administrative expenses. 9. Annual manufacturing overhead costs were $280 for the year. Required a.c.&d. Record the preceding events in horizontal statements models for each of the three years. Close overapplied or underapplied overhead to Cost of Goods Sold. Close appropriate accounts for 2017, 2018, and 2019. In year 2017, the first event is shown as an example. b.&d. 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, 2017, 2018 and 2019. 2017 on 2017 Horizontal the to 2018 Ho 2009 fel CGM Schedule 2019 Horizontal Financial CGM Schedule Financial Stmts Horizontal Record the preceding events in horizontal statements models for each of the three years. Close overapplied or underapplied overhead to Cost of Goods Sold. Close approp first event is shown as an example. (Enter decreases to account balances with a minus sign.) Assets Equity Event No. Cash + Raw Materials + Manufacturing Overhead Cost + Work in Process Finished Goods Retaining Earnings Revenue - Common Stock $ 3,600+ Expenses = Net Income $ + 3,600 + (1,300) + 1,300 + + + 770) + + (400) + + + + (330) + + + + + + + + RER + + + + + + + + + + + + + + + + + + + + + + + + Total $ 1,900 + $ 530 + $ (330) + $ 1,500 + $ 0 = $ 3,600 + $ 0 $ 09 2017 Horizontal 2018 Horizontal 2019 Horizontal CGM Schedule Financial Stmts Record the preceding events in horizontal statements models for each of the three years. Close overapplied or underapplied overhead to Cost of Goods Sold. Close approp year 2017, the first event is shown as an example. (Enter decreases to account balances with a minus sign.) Equity Event No. Assets Manufacturing Overhead Cost Raw Materials Cash + Work in Process" Finished Goods - Common Stock Retaining Earnings Revenue - Expenses = Net Income B.B. + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + Total $ 0 + $ 0 + $ 0 + $ 0 + S 0 = $ 0 + $ 0 $ 0 - $ 0 = $ 0 2017 Horizontal 2018 Horizontal 2019 Horizontal CGM Schedule Financial Stmts Record the preceding events in horizontal statements models for each of the three years. Close overapplied or underapplied overhead to Cost of Goods Sold. Close approf 2017, the first event is shown as an example. (Enter decreases to account balances with a minus sign.) Assets Equity Event No. Cash Raw Materials + Manufacturing Overhead Cost + Work in Process Finished Goods Common Stock Retaining Earnings Revenue - Expenses = Net Income B.B. + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + Total $ 0 + $ 0 + $ 0+ S 0 + $ 0 = $ 0+ $ 0 $ 0 - $ 0 = $ 0 2017 Horizontal Hellobrtal Heilbritan 2018 Horizontal Heziodental 2019 Horizontal CGM Schedule com Schedule Financial Stmts Financial Prepare a schedule of cost of goods manufactured and sold for 2017, 2018 and 2019 ROONEY MANUFACTURING COMPANY Cost of Goods Manufactured and Sold Schedule 2017 2018 2019 Beginning raw materials inventory Purchases Raw materials available Ending raw materials inventory Raw materials used Labor Manufacturing overhead Total manufacturing costs Beginning work in process inventory Total work in process inventory Ending work in process inventory Cost of goods manufactured Beginning finished goods inventory Goods available for sale 0 Ending finished goods inventory Cost of goods sold $ 0 $ 0 $ ROONEY MANUFACTURING COMPANY Financial Statements 2017 2018 2019 Income Statements Sales revenue Cost of goods sold Gross margin Selling and administrative expense Net income | $ 0 $ 0$ 0 Balance Sheets Assets Cash Finished goods inventory Raw materials inventory Work in process inventory 0 $ 0 $ Total assets Equity Common stock Retained earnings Total equity $ 0 $ 0 $ CGM Schedule Financial Stmts