Supreme Videos, Inc., produces short musical videos for sale to retail outlets. The company’s balance sheet accounts as of January 1, the beginning of its fiscal year, are given below:Supreme Videos, Inc. Balance Sheet January 1Assets Current assets: Cash $70,000 Accounts receivable 109,000 Inventories: Raw materials (film, costumes) $37,000 Videos in process 52,000 Finished videos awaiting sale 88,000 177,000 Prepaid insurance 10,400 Total current assets 366,400 Studio and equipment 744,000 Less accumulated depreciation 217,000 527,000 Total assets $893,400 Liabilities and Stockholders' Equity Accounts payable $189,400 Capital stock $427,000 Retained earnings 277,000 704,000 Total liabilities and stockholders' equity $893,400Because the videos differ in length and in complexity of production, the company uses a job-order costing system to determine the cost of each video produced. Studio (manufacturing) overhead is charged to videos on the basis of camera-hours of activity. The company’s predetermined overhead rate for the year is based on a cost formula that estimated $240,000 in manufacturing overhead for an estimated allocation base of 5,000 camera-hours. The following transactions were recorded for the year:a. Film, costumes, and similar raw materials purchased on account, $192,000. b. Film, costumes, and other raw materials issued to production, $207,000 (80% of this material was considered direct to the videos in production, and the other 20% was considered indirect).c. Utility costs incurred in the production studio, $79,000 for account. d. Depreciation recorded on the studio, cameras, and other equipment, $91,000. Three-fourths of this depreciation related to actual production of the videos, and the remainder related to equipment used in marketing and administration. e. Advertising expense incurred, $137,000 for account. f. Costs for salaries and wages were incurred as follows: Direct labor (actors and directors) $ 89,000 Indirect labor (carpenters to build sets, costume designers, and so forth) $ 117,000 Administrative salaries $ 102,000g. Prepaid insurance expired during the year, $7,700 (75% related to production of videos, and 25% related to marketing and administrative activities).h. Miscellaneous marketing and administrative expenses incurred, $9,300 for account. i. Studio (manufacturing) overhead was applied to videos in production. The company recorded 7,000 camera-hours of activity during the year. j. Videos that cost $557,000 to produce according to their job cost sheets were transferred to the finished videos warehouse to await sale and shipment. k. Sales for the year totaled $939,000 and were all on account. The total cost to produce these videos according to their job cost sheets was $607,000.l. Collections from customers during the year totaled $857,000.m. Payments to suppliers on account during the year, $507,000; payments to employees for salaries and wages, $292,000.n. Make an entry in the T-accounts to close any balance in the Studio Overhead account to Cost of Goods Sold. Required:1&2. Prepare a T-account for each account on the company’s balance sheet, and enter the beginning balances. Make an entry directly into the T-accounts for transactions (a) through (m).