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J&B Guitars, Inc., a manufacturer of 6-string guitars, had the following activity during the calendar year 2017: make journal entries from the information below and then create a balance sheet and income statement based on the journal entries

1-Based on anticipated demand, the company planned for product sales to approximate $6,000,000 and Product Cost of approximately $2,500,000.

2-The company entered into a Line of Credit agreement with a bank totaling $5,000,000.

3-The company withdrew $4,000,000 from its line of credit and deposited the proceeds in its corporate checking accounting.

4-The company purchased $1,000,000 of raw materials on account.

5-The company requisitioned $500,000 of raw materials for production.

6-The company paid for Direct Labor totaling $750,000

7-The company applied Direct Overhead totaling $500,000

8-The company paid for Actual Overhead totaling $550,000

9-The company paid for the previously purchased $1,000,000 of raw materials (see 4. above).

10-The company paid for Selling and Administrative expenses totaling $1,400,000

11-The company calculated an underapplied overhead variance totaling $50,000 (see 6. and 7. above).

12-The company purchased a computer system for its just-in-time job process totaling $350,000 on account.

13-The company calculated depreciation expense related to the computer system totaling $70,000.

14-The company paid for Office Furniture for its accounting department totaling $100,000.

15-The company calculated depreciation expense related to the office furniture totaling $10,000.

16-The company completed products with a total cost of 1,750,000.

17-The company sold $1,000,000 of product on account at a 300% markup.

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