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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 Prepaid rent Accounts payable Notes payable Common stock Retained earnings (prior year) Sales Cost of goods sold Factory overhead General and administrative expenses Totals Debit $75,000 44,000 27,000 Credit 9,000 3,000 $11,500 14,500 30,000 78,000 206,000 115,000 26,000 41,000 $340,000 $340,000 These six documents must be processed to bring the accounting records up to date. Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor tine ticket 52: Labor tine ticket 53: Labor tine ticket 54: $ 4,700 direct materials to Job 402 $ 7,600 direct materials to Job 404 $2,200 indirect materials $6,000 direct labor to Job 402 $ 14,000 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. Problem 19-3A (Algo) Part 3 3. Prepare a revised list of account balances as of December 31. Hint: Use the prior year's Retained Earnings balance of $78,000 in this list.

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 Prepaid rent Accounts payable Notes payable Common stock Retained earnings (prior year) Sales Cost of goods sold Factory overhead General and administrative expenses Totals Debit $75,000 44,000 27,000 Credit 9,000 3,000 $11,500 14,500 30,000 78,000 206,000 115,000 26,000 41,000 $340,000 $340,000 These six documents must be processed to bring the accounting records up to date. Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor tine ticket 52: Labor tine ticket 53: Labor tine ticket 54: $ 4,700 direct materials to Job 402 $ 7,600 direct materials to Job 404 $2,200 indirect materials $6,000 direct labor to Job 402 $ 14,000 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. Problem 19-3A (Algo) Part 3 3. Prepare a revised list of account balances as of December 31. Hint: Use the prior year's Retained Earnings balance of $78,000 in this list.

FINANCIAL ACCOUNTING
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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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 Notes payable Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Common stock Retained earnings (prior year) Sales Cost of goods sold $ 75,000 44,000 27,000 9,000 3,000 $ 11,500 14,500 38,000 78,000 206,000 115,000 Factory overhead 26,000 General and administrative expenses 41,000 $ 340,000 $340,000 Totals These six documents must be processed to bring the accounting records up to date. Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor tine ticket 52: Labor tine ticket 53: Labor tine ticket 54: $ 4,700 direct materials to Job 482 $ 7,600 direct materials to Job 484 $ 2,200 indirect materials $ 6,000 direct labor to Job 482 $ 14,000 direct labor to Job 484 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. Problem 19-3A (Algo) Part 3 3. Prepare a revised list of account balances as of December 31. Hint: Use the prior year's Retained Earnings balance of $78,000 in this list. Cash Accounts receivable Answer is complete but not entirely correct. BERGO BAY COMPANY List of Account Balances December 31 Debit Credit S 75,000 44,000 Raw materials inventory Work in process inventory Finished goode inventory Prepaid rent Accounts payable Factory wages payable Notes payable Common stock 7,500 x 52,300 0,000 3,000 11,500 25,000 30,000 x 30,000 Retained earnings (prior year) 78,000 Sales 206,000 Cast of goods sold 185,500x Factory overhead General and administrative expenses 41,000 Totals 417,300 $ 380,500
Transcribed Image Text: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 Notes payable Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Common stock Retained earnings (prior year) Sales Cost of goods sold $ 75,000 44,000 27,000 9,000 3,000 $ 11,500 14,500 38,000 78,000 206,000 115,000 Factory overhead 26,000 General and administrative expenses 41,000 $ 340,000 $340,000 Totals These six documents must be processed to bring the accounting records up to date. Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor tine ticket 52: Labor tine ticket 53: Labor tine ticket 54: $ 4,700 direct materials to Job 482 $ 7,600 direct materials to Job 484 $ 2,200 indirect materials $ 6,000 direct labor to Job 482 $ 14,000 direct labor to Job 484 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. Problem 19-3A (Algo) Part 3 3. Prepare a revised list of account balances as of December 31. Hint: Use the prior year's Retained Earnings balance of $78,000 in this list. Cash Accounts receivable Answer is complete but not entirely correct. BERGO BAY COMPANY List of Account Balances December 31 Debit Credit S 75,000 44,000 Raw materials inventory Work in process inventory Finished goode inventory Prepaid rent Accounts payable Factory wages payable Notes payable Common stock 7,500 x 52,300 0,000 3,000 11,500 25,000 30,000 x 30,000 Retained earnings (prior year) 78,000 Sales 206,000 Cast of goods sold 185,500x Factory overhead General and administrative expenses 41,000 Totals 417,300 $ 380,500
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