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P 27-6A_ Herrera Company_ Work sheet, adjusting entries, and financial statements

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P 27-6A Net income $104,845;Work sheet, adjusting entries, and financial statements Herrera Company had the following trial balance columns on its work sheet.;Herrera Company;Trail Balance;December 31, 20?;Account Title Debit Balance Credit Balance;Cash-----------------------------------------------------------30,300.00---------------------------------------;Government Notes------------------------------------------5,000.00--------------------------------------;Interest Receivable--------------------------------------------------------------------------------------------;Accounts Receivable--------------------------------------34,000.00----------------------------------------;Allowance for Bad Debts-------------------------------------------------------------------530.00---------;Finished Goods Inventory--------------------------------24,000.00--------------------------------------;Work in Process Inventory---------------------------------9,000.00--------------------------------------;Materials Inventory------------------------------------------8,500.00--------------------------------------;Office-Supplies------------------------------------------------3,100.00--------------------------------------;Factory Supplies-----------------------------------------------3,800.00----------------------------------------;Land-----------------------------------------------------------100,000.00---------------------------------------;Factory Building---------------------------------------------120,000.00--------------------------------------;Accumulated Depreciation?Factory Building----------------------------------- 10,000.00;Factory Equipment-------------------------------------------40,000.00------------------------------------------;Accumulated Depreciation?Factory Equipment-----------------------------------------5,000.00;Interest Payable-----------------------------------------------------------------------------------------------------;Accounts Payable---------------------------------------------------------------------------------13,800.00;Income Tax Payable-----------------------------------------------------------------------------------------------;Bonds Payable--------------------------------------------------------------------------------------80,000.00;Capital Stock----------------------------------------------------------------------------------------50,000.00;Paid-In Capital in Excess of Par-----------------------------------------------------------------30,000.00;Retained Earnings----------------------------------------------------------------------------------92,400.00;Cash Dividends----------------------------------------------30,000.00---------------------------------------;Sales----------------------------------------------------------------------------------------------405,100.00---;Interest Revenue-----------------------------------------------------------------------------------300.00?;Factory Overhead-------------------------------------------78,630.00----------------------------------------;Cost of Goods Sold-----------------------------------------190,700.00-------------------------------------------------;Wages Expense-----------------------------------------------70,000.00---------------------------------------------------;Office Supplies Expense-------------------------------------------------------------------------------------------------------;Bad Debit Expense----------------------------------------------------------------------------------------------------------------;Utilities Expense---Office------------------------------------4,400.00-------------------------------------------------------;Interest Expense-----------------------------------------------7,000.00------------------------------------------------------;Income Tax Expense---------------------------------------18,000.00---------------------------------------------------------;-------------------------------------------------------------------776,430.00---------------------776,430.00------------------;Data for adjusting the accounts are as follows;a. Factory overhead to be applied to work in process ending inventory $3,100;b. Interest receivable $75;c. Interest payable 600;d. Estimate of uncollectible accounts based on an aging of accounts receivable 2,930;e. Office supplies consumed 2,900;f. Factory supplies consumed 3,300;g. Factory building depreciation 5,000;h. Factory equipment depreciation 4,000;i. Over applied factory 1,470;j. Provision for corporate income taxes 6,100;k. Physical counts of the inventories agreed with the amounts in the books.;Additional information needed to prepare the financial statements is as follows;Beginning inventories;Finished goods January 1 $18,000;Work in process, January 1 7,300;Materials inventory, January 1 9,500;Materials purchases for the year 51,500;Direct labor 60,000;Actual factory overhead 90,930;Indirect materials charged to production 3,400;Required;1. Prepare a work sheet;2. Prepare the following financial statements and schedule;a. Income statement;b. Schedule of cost of goods manufactured;c. Retained earnings statement;d. Balance sheet

 

Paper#27848 | Written in 18-Jul-2015

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