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

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Question;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#37208 | Written in 18-Jul-2015

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