3. Prepare a revised ist of account balances as of December 31 . Hint Use the prlor year's Retained Earnings balance of $78000 in this list. repare the entry to close any over- or underapplied overhead to Cost of Goods Sold. Journal entry worksheet Record the entry to allocate any overapplied or underapplied overhead. Nate: Enter detolts betare creeits. 4. Prepare an income statement for the year and a balance sheet as of December 31 . Hint Retained earnings 15$115,500 at the end of the current year. 5. Assume that the $2,400 on materials requisition 12 should have been direct materlals charged to Job 404 . Does this error result in overstatement or understatement of total assets? Complete this question by entering your answers in the tabs below. Prepare an income statement. a. In Factory Overhead T-account, enter amounts from part 1 related to factory overhead. Determine the amount of over-or nderapplied overhead. b. Prepare the entry to close any over-or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. In Factory Overhead T-account, enter amounts from part 1 related to factory overhead. Determine the amount of over-or underapplied overhead. Required information The following information applles to the questions displayed below] Bergo Bay's accounting system generated the following account balances on December 31. The company's managet 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. These six documents must be procested to bring the accounung records up to date. Jobs 402 and 404 are the only joos in procezs at yearend. The predeternined overhead rate is 150% of dipect labor cost: -a. In Factery Overheso T-account enter amounts from part 1 related to factory overnesd. Dutermine the amount of over or nolerapplied oiernead. Lb. Prepare me enty to dose siny aver-or underappled overhesd to Cost of Goodr Sold. Prepare a balance sheet as of December 31 . \begin{tabular}{|l|l|l|} \hline \multicolumn{1}{|c|}{ BERGO BAY COMPANY } \\ \hline \multicolumn{1}{|c|}{ Balance Sheet } \\ \hline As at December 31 \\ \hline Cash & Assets & \\ \hline Accounts receivable, & \\ \hline Prepaid rent & & \\ \hline Inventories & & \\ \hline & & \\ \hline Total assets & & \\ \hline & & \\ \hline Total equity & & \\ \hline Total liabilites and equity & & \\ \hline \end{tabular} 4. Prepare an income statement for the year and a balance sheet as of December 31. Hint Retained eamings is $115.500 at the end of the current year 5. Assume that the $2400 on materials requsituon 12 should have been direct materials charged to lob 404 Does this error result in overstatement or understatement of total assets? Complete this question by entering your answers in the tabs below. Assume that the 32.400 on materials requisicion 12 should have been difect materale charged to 10b404. Doet chls error result in overstatement or understatement of total assets on the balance sheetat Decomben 3
