A Selected List of Accounts Used by Cline Manufacturing Company

question 133

Essay

A selected list of accounts used by Cline Manufacturing Company follows: $$\begin{array} { l c l } \text { Code } & \text { Code } \\\text { A Cash } & \text { F } & \text { Accounts Payable } \\\text { B Accounts Receivable } & \text { G } & \text { Factory Labor } \\\text { C RawMaterials Inventory } & \text { H } & \text { Manufacturing Overhead } \\\text { D Work In Process Inventory } & \text { I } & \text {Cost of Goods Sold } \\\text { E Finished Goods Inventory } & \text { J } & \text {Sales Revenue }\end{array}$$ Cline Manufacturing Company uses a job order system and maintains perpetual inventory records.
Instructions
Place the appropriate code letter in the columns indicating the appropriate account(s) to be debited and credited for the transactions listed below.

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Definitions:

Net Income

The amount of revenue left over after deducting all expenses, taxes, and costs from total revenue.

Cost of Goods Sold

The direct costs attributable to the production of goods sold by a company, including materials and labor.

Contra-Asset

An account on a company's balance sheet that reduces the value of an asset, often used for accumulated depreciation.

Current Asset

Any asset that is expected to be converted into cash within one year or within the normal operating cycle of a business.