Bergo Bay's accounting system generated the following account balances on December 31. The company's manager knows something is wrong with this list of balances because it does not show any balance for Work in Process Inventory. and the accrued factory payroll (Factory Wages Payable) has not been recorded. Debit Credit Cash $ 79,000 Accounts receivable 48,000 29,000 0 Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent 9,000 3,000 Accounts payable $ 9,600 12,600 Notes payable Common stock 30,000 93,000 Retained earnings (prior year) Sales 189,800 Cost of goods sold 102,000 Factory overhead 27,000 General and administrative expenses 38,000 Totals $ 335,000 $ 335,000 These six documents must be processed to bring the accounting records up to date. $ 4,800 direct materials to Job 402 $ 7,100 direct materials to Job 404 $ 2,400 indirect materials Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor time ticket 52: Labor time ticket 53: Labor time ticket 54: $ 7,000 direct labor to Job 402 $ 13,000 direct labor to Job 404 $ 5,000 indirect labor Jobs 402 and 404 are the only jobs in process at year-end. The predetermined overhead rate is 150% of direct labor cost. 2-a. In Factory Overhead T-account, enter amounts from part 1 related to factory overhead. Determine the amount of over- or underapplied overhead. 2-b. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold.
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
![Required information
[The following information applies to the questions displayed below.]
Bergo Bay's accounting system generated the following account balances on December 31. The company's manager
knows something is wrong with this list of balances because it does not show any balance for Work in Process Inventory,
and the accrued factory payroll (Factory Wages Payable) has not been recorded.
Credit
Debit
$ 79,000
Cash
Accounts receivable
Raw materials inventory
48,000
29,000
0
Work in process inventory
Finished goods inventory
Prepaid rent
9,000
3,000
Accounts payable
$ 9,600
12,600
Notes payable
Common stock
30,000
Retained earnings (prior year).
93,000
Sales
189,800
Cost of goods sold
102,000
Factory overhead
27,000
General and administrative expenses
38,000
Totals
$ 335,000
$ 335,000
These six documents must be processed to bring the accounting records up to date.
$ 4,800 direct materials to Job 402
$ 7,100 direct materials to Job 404
Materials requisition 10:
Materials requisition 11:
Materials requisition 12:
Labor time ticket 52:
$ 2,400 indirect materials
$ 7,000 direct labor to Job 402
Labor time ticket 53:
$ 13,000 direct labor to Job 404
$5,000 indirect labor
Labor time ticket 54:
Jobs 402 and 404 are the only jobs in process at year-end. The predetermined overhead rate is 150% of direct labor cost.
2-a. In Factory Overhead T-account, enter amounts from part 1 related to factory overhead. Determine the amount of over-or
underapplied overhead..
2-b. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F590f961d-6be4-4dc5-afd9-94e0e51d73f0%2F3fbc89b7-19aa-4d27-8456-949ad9582a21%2Fl957qr_processed.jpeg&w=3840&q=75)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
