Chapter 12 Homework i Saved Help Save & Exit Submit 5 Check my work 9 Vernon Manufacturing Company started operations on January 1, Year 1. During Year 1, the company engaged in the following transactions. P2 Z5. 2.22 points 1. Issued common stock for $86,000. 2. Paid $33,000 cash to purchase raw materials used to make products. 3. Transferred $23,000 of raw materials to the production department. 4. Paid $32,500 cash for labor used to make products. 231 233 234 235 eBook 5. Paid $53,000 cash for overhead costs (assume actual and estimated overhead are the same). 6. Finished work on products that cost $83,000 to make. 7. Sold products that cost $68,000 to make for $94,000 cash. 23 231 23 Required References a. Prepare the December 31, Year 1, balance sheet. b. Prepare the December 31, Year 1, income statement. 239 240 24: 241 243 Complete this question by entering your answers in the tabs below. 244 245 Required A Required B 246 241 Prepare the December 31, Year 1, income statement. VERNON MANUFACTURING COMPANY Income Statement for Year 1 24 249 250 25: Sales revenue Cost of goods sold Gross loss $ 86,000 251 94,000 253 $ (8,000) 254 Labor Net income 255 $ (8,000) 256 251 < Required A Required B 25 259 260