Financial Statements The adjusted trial balance columns of Braiden Company's spreadsheet are shown. Braiden Company Spreadsheet (Partial) For the Year Ended December 31, 20-- ADJUSTED TRIAL BALANCE ACCOUNT TITLE DEBIT CREDIT Cash 15,720 Government Notes 3,500 Interest Receivable 50 Accounts Receivable Allowance for Doubtful Accounts 25,100 1,350 Finished Goods Inventory 18,420 Work in Process Inventory 7,510 Materials Inventory 4,650 Estimated Returns Inventory 500 Office Supplies 330 Factory Supplies 470 Prepaid Insurance 700 Land 25,000 Factory Building 90,000 Accumulated Depreciation-Factory Building 20,650 Factory Equipment 100,000 Accumulated Depreciation-Factory Equipment 29,000 Accounts Payable 17,000 Customer Refunds Payable 700 Income Tax Payable 3,600 Interest Payable 700 Bonds Payable 50,000 Capital Stock 55,000 Paid-in Capital in Excess of Par 15,000 Retained Earnings 79,945 Cash Dividends 20,000 Sales 403,000 Sales Returns and Allowances 6,260 Interest Revenue 300 Factory Overhead 92,500 92,500 Cost of Goods Sold 295,135 Wages Expense 45,200 Office Supplies Expense 1,500 Bad Debt Expense 2,150 Utilities Expense-Office 1,700 Interest Expense 2,900 Income Tax Expense 9,450 768,745 768,745 456,795 495,800 Net Income 39,005 Additional information needed to prepare the financial statements is as follows: Materials inventory, January 1 $4,140 Work in process inventory, January 1 5,720 Finished goods inventory, January 1 16,535 Estimated returns inventory, January 1, remaining balance 50 Materials purchases 136,770 Direct labor 76,000 Actual factory overhead 92,500 Indirect materials included in overhead 5,500 Required: 1. Prepare a schedule of cost of goods manufactured for the year ended December 31, 20-- Braiden Company Schedule of Cost of Goods Manufactured For Year Ended December 31, 20- Work in process, January 1 Direct materials Materials inventory, January 1 Materials purchases / Materials available Materials inventory, December 31 Cost of materials used Less indirect materials included in overhead Cost of direct materials used Direct labor Factory overhead Total manufacturing costs Total work in process during the period Work in process, December 31 Cost of goods manufactured Prepare an income statement for the year ended December 31, 20--. Braiden Company Income Statement For Year Ended December 31, 20- Sales Less sales returns and allowances Net sales Cost of goods sold: Finished goods inventory, January 1 Estimated returns inventory, January 1 Cost of goods manufactured Cost of goods available for sale Finished goods inventory, December 31 Estimated returns inventory, December 31 Cost of goods sold Gross profit Operating expenses: Wages expense Office supplies expense Bad debt expense Utilities expense-office Total operating expenses Operating income Other revenue: Interest revenue Other expense: Interest expense Income before income taxes Income tax Net income Feedback Check My Work 2. Prepare a statement of retained earnings for the year ended December 31, 20-. Braiden Company Statement of Retained Earnings For Year Ended December 31, 20-- Retained earnings, January 1 Add net income for the year $ Less cash dividends Retained earnings, December 31 v