Whitley Products Corporation beginsoperations on April 1. The firm engages in the following transactions during April:

(1)

Issues 25,000 shares of $10-par value common stock for $15 per share in cash.

(2)

Acquires land costing $25,000 and a building costing $275,000 by paying $50,000 in cash and

signing a note payable to a local bank for the remainder of the purchase price. The note bears

interest at 8 percent per year and matures in three years.

(3)

Acquires equipment costing $125,000 for cash.

(4)

Pays $2,800 to transport the equipment to the office of Whitley Products Corporation.

(5)

Pays $3,200 to install and test the equipment.

(6)

Pays the one-year premium of $12,000 for property and liability insurance on the building and

equipment for coverage beginning May 1.

(7)

Agrees to manufacture custom order merchandise for a particular customer beginning in May at a

selling price of $15,000. The customer advances $1,500 of the selling price with the order.

(8)

Orders raw materials costing $60,000 from various suppliers.

(9)

Receives notification from the suppliers that the raw materials ordered in transaction

(8)

were

shipped. The merchandise belongs to the suppliers until received by Whitley Products

Corporation.

(10)

Receives the raw materials shipped in transaction

(9)

.

(11)

Discovers that raw materials costing $8,000 are damaged and returned to the supplier. The firm

has not yet paid the supplier.

(12)

Pays the raw materials suppliers in transactions

(8)

,

(9)

,

(10)

, and

(11)

the amounts due, after

subtracting 2 percent for prompt payment. The firm treats cash discounts as a reduction in the

acquisition cost of the raw materials.

a.

PrepareTaccountsandenterthetwelvetransactions.

b.

Prepare a balance sheet for Whitley Products Corporation as of April 30