For part A, instead of a horizontal statement model, use T-accounts!

Job-order costing system Preston Corporation was created on January 1, 2018, when it received a stockholder's contribution of $92,000. It purchased $21,000 of raw materials and worked on three job orders during the year. Data about these jobs follow. (Assume all transactions are for cash unless otherwise indicated.) Direct Raw Materials Used Direct Labor Job 1 Job 2 Job 3 Total 8,000 3,600 6.400 8,000 9,600 8,960 26,560 $18,000 The average wage rate is $32 per hour. Manufacturing overhead is applied using a predetermined overhead rate of $15 per direct labor hour. Jobs 1 and 3 were completed during the year, and Job 1 was sold for $26,000. Preston paid $2,800 for selling and administrative expenses. Actual factory overhead was $12,000 Required a. Record the preceding events in a horizontal statements model. The first event for 2018 has been recorded as an example Assets Equity Cash + Raw M. + MOH + WIP + F.Goods C,Stk. + Ret. Ear. Rew. Exp. Net Inc. - = 2,000 NA NA NANA 92,000 NA NA NANA b. Reconcile all subsidiary accounts with their respective control accounts c. Record the closing entry for over- or underapplied manufacturing overhead, 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 2018 Job-order costing system Preston Corporation was created on January 1, 2018, when it received a stockholder's contribution of $92,000. It purchased $21,000 of raw materials and worked on three job orders during the year. Data about these jobs follow. (Assume all transactions are for cash unless otherwise indicated.) Direct Raw Materials Used Direct Labor Job 1 Job 2 Job 3 Total 8,000 3,600 6.400 8,000 9,600 8,960 26,560 $18,000 The average wage rate is $32 per hour. Manufacturing overhead is applied using a predetermined overhead rate of $15 per direct labor hour. Jobs 1 and 3 were completed during the year, and Job 1 was sold for $26,000. Preston paid $2,800 for selling and administrative expenses. Actual factory overhead was $12,000 Required a. Record the preceding events in a horizontal statements model. The first event for 2018 has been recorded as an example Assets Equity Cash + Raw M. + MOH + WIP + F.Goods C,Stk. + Ret. Ear. Rew. Exp. Net Inc. - = 2,000 NA NA NANA 92,000 NA NA NANA b. Reconcile all subsidiary accounts with their respective control accounts c. Record the closing entry for over- or underapplied manufacturing overhead, 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 2018