ch 15 Example 1 Solution.docx - Chapter 15 Example 1...

Chapter 15 Example 1 Solution
Accounting 21
Ferrell
Journalize the following transactions for Fit Feet Corporation. Fit Feet is a special
shoe manufacturer that makes shoes for special order only. All shoes are
manufactured to the exact specifications of the customer. These shoes are usually
corrective shoes prescribed by podiatrists.
1. On September 1, the company purchased on account leather, canvas, rubber,
shoe laces, padding, thread, dye and cement glue for $5,000.
2. During the month they incurred $12,000 employee salaries and payroll taxes
of $2,000 which they have not yet paid.
3. The following costs have been incurred which relate to manufacturing as
follows: supplies purchased on account $4,000, factory equipment
depreciation $3,000, and insurance of $1,000 has expired.