3. Prepare a revised list of account balances as of December 31. Hint: Use the prior year's Retained Earnings balance of $79,000 in this ist. Cash BERGO BAY COMPANY List of Account Balances Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Factory wages payable Notes payable Common stock Retained earnings (prior year) Sales Cost of goods sold December 31 Debit Credit $ 69,000 38,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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[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.
Cash
Accounts receivable
Raw materials inventory
Work in process inventory
Finished goods inventory
Accounts payable
Prepaid rent
Notes payable
Common stock
Retained earnings (prior year)
Sales
Cost of goods sold
Factory overhead
General and administrative expenses
Totals
Debit
$ 69,000
38,000
Credit
24,000
0
15,000
5,000
$ 10,800
13,800
50,000
79,000
187,400
115,000
24,000
51,000
$ 341,000
$ 341,000
These six documents must be processed to bring the accounting records up to date.
Materials requisition 10:
Materials requisition 11:
Materials requisition 12:
Labor time ticket 52:
Labor time ticket 53:
Labor time ticket 54:
$ 4,300 direct materials to Job 402
$ 8,000 direct materials to Job 404
$ 2,400 indirect materials
$ 8,000 direct labor Job 402
$ 12,000 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 100% of direct labor cost.
3. Prepare a revised list of account balances as of December 31. Hint: Use the prior year's Retained Earnings balance of $79,000 in this
list.
BERGO BAY COMPANY
List of Account Balances
Cash
Accounts receivable
Raw materials inventory
Work in process inventory
Finished goods inventory
Prepaid rent
Accounts payable
Factory wages payable
Notes payable
Common stock
Retained earnings (prior year)
Sales
Cost of goods sold
December 31
Debit
Credit
$
69,000
38,000
Factory overhead
General and administrative expenses
Totals
$
107,000 $
0
Transcribed Image Text:! 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. Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Accounts payable Prepaid rent Notes payable Common stock Retained earnings (prior year) Sales Cost of goods sold Factory overhead General and administrative expenses Totals Debit $ 69,000 38,000 Credit 24,000 0 15,000 5,000 $ 10,800 13,800 50,000 79,000 187,400 115,000 24,000 51,000 $ 341,000 $ 341,000 These six documents must be processed to bring the accounting records up to date. Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor time ticket 52: Labor time ticket 53: Labor time ticket 54: $ 4,300 direct materials to Job 402 $ 8,000 direct materials to Job 404 $ 2,400 indirect materials $ 8,000 direct labor Job 402 $ 12,000 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 100% of direct labor cost. 3. Prepare a revised list of account balances as of December 31. Hint: Use the prior year's Retained Earnings balance of $79,000 in this list. BERGO BAY COMPANY List of Account Balances Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Factory wages payable Notes payable Common stock Retained earnings (prior year) Sales Cost of goods sold December 31 Debit Credit $ 69,000 38,000 Factory overhead General and administrative expenses Totals $ 107,000 $ 0
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