Chapter 3.A, Problem 2E

Transaction Analysis L03-5
Adams Company is a manufacturer that completed numerous transactions during the month some of are below.

a. Manufacturing Overhead costs incurred on account. $80.000.
b. Depreciation was recorded for the monthly (80% rented to factory equipment. and the remainder related to selling and administrative equipment).
c. Prepaid insurance expired during the month, $2,500 (75% rented to production, and 25% related to selling and administration).
d. Applied $115.000 of manufacturing overhead to production during the month,
e. Closed $5,125 of over applied overhead to cost of goods sold.
The table shown below includes a subset of Adams Company’s balance Sheet accounts. Record each of the above transactions using the accounts that are given. If a transaction increases an account balance then account balance, then record the amount in parentheses.