Sydney Cycles Corp. uses a job order cost system. A partial list of the accounts being maintained by the company, with their balances as of September 1, follows:
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $64,250
Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,500
Work in process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,000
Accounts payable (credit). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,000
Factory overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . none
The following transactions were completed during September:
a. Materials purchases on account during the month, $58,000.
b. Materials requisitioned during the month:
1. Direct materials, $45,000.
2. Indirect materials, $8,000.
c. Direct materials returned by factory to storeroom during the month, $900.
d. Materials returned to vendors during the month prior to payment, $1,500.
e. Payments to vendors during the month, $51,500.
Required:
1. Prepare general journal entries for each of the transactions.
2. Post the general journal entries to T-accounts.
3. Balance the accounts and report the balances of September 30 for the following:
a. Cash
b. Materials
c. Accounts Payable