Prepare an income statement. repare 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 \begin{tabular}{|l|r|r|} \hline Accounts payable & & 8,700 \\ \hline Factory wages payable & & \\ \hline Notes payable & & \\ \hline Common stock & & 11,700 \\ \hline Retained earnings (prior year) & & 50,000 \\ \hline Sales & & 81,000 \\ \hline Cost of goods sold & & 167,600 \\ \hline Factory overhead & & \\ \hline General and administrative expenses & & \\ \hline Totals & & \\ \hline \end{tabular} Prepare a balance sheet as of December 31 . 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. These six documents must be processed to bring the accounting records up to date. These six documents must be processed to bring the accounting records up to date. Jobs 402 and 404 are the only jobs in process at year-end. The predetermined overhead rate is 100% of direct labor cost. a. Direct materials. b. Direct labor. c. Overhead applied. d. Indirect materials. e. Indirect labor. equired: Use the document information above to prepare journal entries for the above costs. \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ List of Account Balances } \\ \hline \multicolumn{3}{|c|}{ December 31} \\ \hline & Debit & Credit \\ \hline Cash & $67,000 & \\ \hline Accounts receivable & 36,000 & \\ \hline \multicolumn{3}{|l|}{ Raw materials inventory } \\ \hline \multicolumn{3}{|l|}{ Work in process inventory } \\ \hline Finished goods inventory & 15,000 & \\ \hline Prepaid rent & 5,000 & \\ \hline Accounts payable & & 8,700 \\ \hline \multicolumn{3}{|l|}{ Factory wages payable } \\ \hline Notes payable & & 11,700 \\ \hline Common stock & & 50,000 \\ \hline Retained earnings (prior year) & 7 & 81,000 \\ \hline Sales & 7 & 167,600 \\ \hline \end{tabular}