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. DebitCreditCash$ 70,000 Accounts receivable39,000 Raw materials inventory24,500 Work in process inventory0 Finished goods inventory15,000 Prepaid rent5,000 Accounts payable $ 11,800Notes payable 14,800Common stock 50,000Retained earnings (prior year) 94,000Sales 158,900Cost of goods sold112,000 Factory overhead28,000 General and administrative expenses36,000 Totals$ 329,500$ 329,500 These six documents must be processed to bring the accounting records up to date. Materials requisition 10:$ 4,400direct materials to Job 402Materials requisition 11:$ 7,800direct materials to Job 404Materials requisition 12:$ 2,400indirect materialsLabor time ticket 52:$ 7,000direct labor to Job 402Labor time ticket 53:$ 13,000direct labor to Job 404Labor time ticket 54:$ 5,000indirect labor Jobs 402 and 404 are the only jobs in process at year-end. The predetermined overhead rate is 150% 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 $94,000 in this list. CashAccounts receivableRaw materials inventoryWork in process inventoryFinished goods inventoryPrepaid rentAccounts payableFactory wages payableNotes payableCommon stockRetained earnings (prior year)SalesCost of goods soldFactory overheadGeneral and administrative expensesTotals$Debit0 $Credit0 BERGO BAY COMPANYList of Account BalancesDecember 31DebitCredit

BERGAMO BAY COMPANY List of account BalancesDECEMBER 31, particulars debit credit Cash…

Answered: Bergo Bay's accounting system generated…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

100%

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	$ 70,000
Accounts receivable	39,000
Raw materials inventory	24,500
Work in process inventory	0
Finished goods inventory	15,000
Prepaid rent	5,000
Accounts payable		$ 11,800
Notes payable		14,800
Common stock		50,000
Retained earnings (prior year)		94,000
Sales		158,900
Cost of goods sold	112,000
Factory overhead	28,000
General and administrative expenses	36,000
Totals	$ 329,500	$ 329,500

These six documents must be processed to bring the accounting records up to date.

Materials requisition 10:	$ 4,400	direct materials to Job 402
Materials requisition 11:	$ 7,800	direct materials to Job 404
Materials requisition 12:	$ 2,400	indirect materials
Labor time ticket 52:	$ 7,000	direct labor to Job 402
Labor time ticket 53:	$ 13,000	direct labor to Job 404
Labor time ticket 54:	$ 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.

3. Prepare a revised list of account balances as of December 31. Hint: Use the prior year's Retained Earnings balance of $94,000 in this list.

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
Factory overhead
General and administrative expenses
Totals
$
Debit
0 $
Credit
0

BERGO BAY COMPANY
List of Account Balances
December 31
Debit
Credit

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions