Vernon Corporation builds sailboats. On January 1, 2015, the company had the following account balances: $80,000 for both cash and common stock. Boat 25 was started on February 10 and finished on May 31. To build the boat, Vernon had incurred cash costs of $6,300 for labor and $4,000 for materials. During the same period, Vernon paid $11,930 cash for actual manufacturing overhead costs. The company expects to incur $266,000 of indirect overhead cost during 2015. The overhead is allocated to jobs based on direct labor cost. The expected total labor cost for the year is $140,000.

Vernon uses a just-in-time inventory management system. Consequently, it does not have raw materials inventory. Raw materials purchases are recorded directly in the Work in Process Inventory account.

Required:

a.	Use the horizontal financial statements model, to record Vernon?s business events. The first row shows beginning balances.(Enter any decreases to account balances with a minus sign. Do not round intermediate calculations and round final answers to the nearest whole dollar amount.)