This is a new manufacturing corporation that issued $30000 common stock for cash on the first day. All overhead expenses are paid immediately by cash. To make it easy, there are no other operating expenses and no income tax. No Dividend is declared for the year. Post all journal entries in the General Ledger T-accounts and using their respective balances prepare an Income Statment and Balance Sheet for the first month of the operation. Use a blank paper for posting Journal Entries into General Ledger and preparation of the financial statements.

1. What is the Raw Material balance at the end of the period?

2. What is the Work in process account balance at the end of the period?

3. What is the Cash account balance at the end of the period?

4. What is the Net Income at the end of the period in the Income Statement?

5. What is the Total Inventory balance at the end of the period in the Balance sheet?

6. What is the Total Asset balance at the end of the period in the Balance sheet?

7. What is the Retained Earnings account balance at the end of the period (as mentioned before no Dividend has been declared) in the Equity section of the Balance Sheet?

8. What is the Total Equity Balance at the end of the period in the Balance sheet?

9. What is the Total Liability balance at the end of the period in the Balance sheet?

Cool Sun produces awnings and screens. Prepare journal entries to reflect the following transactions. After you complete the entries, determine the amount to include in raw materials, work in process, and finished goods. Aug. 4, 20X5 Purchased fabric and aluminum to be used in the manufacturing process. The purchase price was $4,000, on account. Aug. 8,205 Transferred 60% of the raw materials purchased on August 4 into production. Aug. 8, 20X5 Incurred direct labor costs of $3,000. Factory overhead is applied at 40% of the direct labor cost Aug. 9, 20X5 Transferred completed awnings with total assigned costs of $4,400 to finished goods. Aug. 10, 20X5 Sold and delivered half of the finished goods (from August 9) to a customer for $4,000 cash