Velasco Co. uses a job order cost system. The following data summarize the operations related to production for July:

July	1	Materials purchased on account, $603,850
	2	Materials requisitioned, $641,100, of which $75,300 was for general factory use
	31	Factory labor used, $688,540, of which $90,730 was indirect
	31	Other costs incurred on account for factory overhead, $154,470; selling expenses, $234,760; and administrative expenses, $145,220
	31	Prepaid expenses expired for factory overhead, $30,340; for selling expenses, $27,590; and for administrative expenses, $18,760
	31	Depreciation of office building was $86,990; of office equipment, $41,730; and of factory equipment, $32,800
	31	Factory overhead costs applied to jobs, $363,550
	31	Jobs completed, $1,017,780
	31	Cost of goods sold, $868,240

Required:

Journalize the entries to record the summarized operations. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

CHART OF ACCOUNTS

Velasco Co.

General Ledger

	ASSETS
110	Cash
121	Accounts Receivable
125	Notes Receivable
126	Interest Receivable
131	Materials
132	Work in Process
133	Factory Overhead
134	Accumulated Depreciation-Factory Equipment
135	Finished Goods
141	Supplies
142	Prepaid Insurance
143	Prepaid Expenses
181	Office Building
182	Accumulated Depreciation-Office Building
191	Office Equipment
192	Accumulated Depreciation-Office Equipment

	LIABILITIES
210	Accounts Payable
221	Utilities Payable
231	Notes Payable
236	Interest Payable
241	Lease Payable
251	Wages Payable
252	Consultant Fees Payable

	EQUITY
311	Common Stock
340	Retained Earnings
351	Dividends

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Goods Sold
520	Wages Expense
531	Selling Expenses
532	Insurance Expense
533	Utilities Expense
534	Office Supplies Expense
540	Administrative Expenses
561	Depreciation Expense-Office Building
562	Depreciation Expense-Office Equipment
590	Miscellaneous Expense
710	Interest Expense

Journal

Journalize the entries to record the summarized operations. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

PAGE 10

JOURNAL

ACCOUNTING EQUATION

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