Thornton Construction Company began operations on January 1, 2019, when it acquired $20,000 cash from the issuance of common stock. During the year, Thornton purchased $2,600 of direct raw materials and used $2,400 of the direct materials. There were 102 hours of direct labor worked at an average rate of $7 per hour paid in cash. The predetermined overhead rate was $3.00 per direct labor hour. The company started construction on three prefabricated buildings. The job cost sheets reflected the following allocations of costs to each building: Job 1 Job 2 Job 3 Direct Materials $ 600 1,000 800 Direct Labor Hours 26 46 30 The company paid $64 cash for indirect labor costs. Actual overhead cost paid in cash other than indirect labor was $222. Thornton completed Jobs 1 and 2 and sold Job 1 for $1,480 cash. The company incurred $140 of selling and administrative expenses that were paid in cash. Over- or underapplied overhead is closed to Cost of Goods Sold. Required a. Record the preceding events in a horizontal statements model. The first event for 2019 has been recorded as an example. b. Reconcile all subsidiary accounts with their respective control accounts. c. Record the closing entry for over- or underapplied manufacturing overhead in the horizontal statements model, assuming that the amount is insignificant. d. Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet for 2019. Reg A to C Reg D CGM Sched Reg D Inc Stmt Reg D Bal Sheet Record the preceding events in a horizontal statements model. Reconcile all subsidiary accounts with their respective control accounts. Record the closing entry for over- or underapplied manufacturing overhead in the horizontal statements model, assuming that the amount is insignificant. The first event for 2019 has been recorded as an example. (Enter costs of each job individually. Enter any decreases to account balances with a minus sign.) Show less Cash Manufacturing Overhead Assets Raw Materials 0 Work In Process Finished Goods Equity Common Retained Stock Earnings 20.000 0 Revenue Expenses Net Income 20.000 0 0 0 0 0 0 20,000 0 + 0 01 0 = 20,000 + 0 0 = 0 Req A to C Reg D CGM Sched Reg D Inc Stmt Reg D Bal Sheet Prepare a schedule of cost of goods manufactured and sold for 2019. THORNTON CONSTRUCTION COMPANY Cost of Goods Manufactured and sold for 2019 Raw materials available Raw materials used Total manufacturing costs 0 Total work in process inventory 0 Cost of goods manufactured 0 Goods available for sale 0 Cost of goods sold $ Reg A to C Reg D CGM Sched Reg D Inc Stmt Reg D Bal Sheet Prepare an income statement for 2019. THORNTON CONSTRUCTION COMPANY Income Statement for 2019 0 $ Req A to C Reg D CGM Sched Req D Inc Stmt Reg D Bal Sheet Prepare a balance sheet for 2019. THORNTON CONSTRUCTION COMPANY Balance Sheet for 2019 Assets 0 Total assets Equity Total equity $ Req A to C Reg D CGM Sched Reg D Inc Stmt Reg D Bal Sheet Prepare a schedule of cost of goods manufactured and sold for 2019. THORNTON CONSTRUCTION COMPANY Cost of Goods Manufactured and sold for 2019 Raw materials available Raw materials used Total manufacturing costs 0 Total work in process inventory 0 Cost of goods manufactured 0 Goods available for sale 0 Cost of goods sold $ Reg A to C Reg D CGM Sched Reg D Inc Stmt Reg D Bal Sheet Prepare an income statement for 2019. THORNTON CONSTRUCTION COMPANY Income Statement for 2019 0 $ Req A to C Reg D CGM Sched Req D Inc Stmt Reg D Bal Sheet Prepare a balance sheet for 2019. THORNTON CONSTRUCTION COMPANY Balance Sheet for 2019 Assets 0 Total assets Equity Total equity $
