RealTime Inc. Tral Balance December 31, 20X1 CREDIT 6 00 Ololo o 7 6 0 0 0 1 0 0 0 0 0 3 500 5000000 520 olo o 70oooo 50 olo o 6 0 0 0 0 0 0 30 000 olo o 1 960oOo 1 5 0 0 0 0 0 0 1 960 000 300 odoo 6 00 Olo o 8 60ooool - L ACCOLINT NAVE Cash Accounts Receivable Allowance for Doubtw Accounts Aow Materials Inventory Work Process inventory Anished Goods entory Prepaid Insurance Roctory Supplies Land Factory Bioting Accumulated Depredation-Roctory Bilding Factory Machines Accumulated Depredation-Fodory Machines Office Furniture and Equipment Accumulated Deprecation-ofice Furniture and Equipment Accounts Payable Salaries and Wages Payable Income Tax Poyable Social Security Tax Poyable Medicare Ton Payable Employee come Tor Poyable Common Stock Retched Earnings Soles Sales Returns and Alowances Materials Purchases Purchases Returns and Allowances Rreighton Direct Labor Indirect Labor Payrol Tones Expenses-Factory Lelles-Factory Reports and Maintenance-Factory Indirect Materials and Supples Deprecation-Factory wang Depreciation Factory Machines Insurance-Factory Property Tones-Factory Sales Solares Expense Powol Tones Expense-Sales Delivery Expense Advertising Expense Uncollective Accounts Expense Miscellaneous Seling Expense Officers' Salaries Expense Office Sales Expense Poyrol Toxes Expense-Administrative Depreciation Expenseance Future and Equipment Other Administrave Expenses Income Tax Expense Totals 110 00 Olo o 49 330 000 1 0 0 5 5 0 OOO 6 50 000 26 2 0 0 0 0 0 3 0 0 0 0 0 1 1 0 0 0 0 0 1 9 1 0 0 0 0 0 3 0 0 0 0 0 0 306 000 9 0 0 0 0 0 3 4 0 0 0 0 3 0 0 0 0 0 7 0 0 0 0 0 9 5 0 0 0 0 0 950 0 0 0 6 0 0 0 0 0 6 00 Olo o 750 Olo oll 1 550 0 0 0 0 5 000 000 1 950 000 60ooo 1 1 0 0 0 0 0 17440000017 4400 000 Analyze: Assume that the industry standard for direct labor costs is 20 percent of cost of goods manufactured. How is Real Time Inc. performing as compared to this industry standard? Explain. Problem 26.2A Preparing a statement of cost of goods manufactured, an income statement, a statement retained earnings, and a balance sheet; completing the worksheet; recording adjusting, clos and reversing entries. Objectives 26-1, 26-3, 26-4, 26-5, 26-6, 26-7, 26-8 RealTime Inc. manufactures parts for computers. The Trial Balance section of its worksheet and other year-end data follow. INSTRUCTIONS 1. Prepare a 12-column manufacturing worksheet for the year ended December 31, 20X1. Enter the trial balance in the first two 2. Using the data given, enter the adjustments. Then complete the worksheet. Label all inventory adjustments as (a). 3. Prepare a statement of cost of goods manufactured. 4. Prepare an income statement. 5. Prepare a statement of retained earnings. Additional data needed is as follows: a. Balance of Retained Earnings on January 1 was $603,300. b. Dividends declared and paid on common stock during the year amounted to $110,000. c. There were no changes in any other stockholders' equity accounts. 6. Prepare a balance sheet as of December 31, 20X1. There are 110.000 shares of $1 par common stock outstanding, out of the shares authorized. 7. Record the adjusting entries shown on the worksheet in general journal form. For each journal entry, use the letter that ident adjustment on the worksheet. Make a separate entry for each inventory adjustment. Do not give explanations. 8. Prepare the closing entries for all accounts involved in the cost of goods manufactured. 9. Prepare the closing entries for all revenue and expense accounts and the Manufacturing Summary account. 10. Prepare the closing entry to close the Income Summary account. 11. Journalize the reversing entries. Date the entries January 1, 20X2. YEAR-END DATA a. Physical inventories taken on December 31, 20X1. show $31.000 of raw materials on hand and $45,000 of finished goods on han work in process inventory is estimated to be $48.000 on the same date. b. It is estimated that 2 percent of the outstanding accounts receivable might not be collectible. c. Of the prepaid insurance, $4,900 covering the factory building and equipment has expired. d. A physical inventory discloses $4.400 of factory supplies on hand at the end of the period. e. Depreciation expense for the year is as follows: $9,800 on the factory building, $9,800 on the factory machines, and $3,000 on th office furniture. (Make a compound entry.) f. Payroll accruals at the end of the period include $3.500 of direct labor and $500 of indirect labor. g. Payroll taxes on accrued wages are social security, 6.2 percent, and Medicare tax, 1.45 percent. h. Use an income tax rate of 25 percent. (Round to nearest dollar). Pag Realtime in Tablice December 11 221 LILL TODO Casa ACCORD AIDA Row Materih Tony And God Repair factory Land Factory Acued produry Pacoy Moches Anete Dupreden-Rody Mees Toteutture and Assunta Deprestare and E Ello 760000 TIL 25000 500000 520000 200000 Solaco E000000 2000000 TITI 15 0 0 0 0 30000 doo TELE 156 doo doel Sobre nemoges Powe come POGON Society for Ryobile Cobra loyee color Cannon Sud Dhe is Solomon Alons Mersuche Par and we AN 1000000 29200000 TOOSSO 00 GGOOD 262000 HII 2000 1000 121000 2000 2016000 DODO 400 So cool odbor Paradoxes Bapetes-Factory TUIstory Repairs and Merce-Fectory natred Material and Supplies predactory outing Depreciation Factory Mode murance-Fadwy opty-sty Soms Shoes Paroles pense-SOR Taylipenie AO Open Uno Apense MODNI Senge Tom Sobre Orice Sales Expense Payrol Toms Destante pense-offor Ford Toogoo 5000 S5ooo SOCO SODOO 2500 15 500 500DOG 196000 TI Degredo Other Alpe come opene 50000 10000 72000OZZOQOOS Analyze: Assume that the industry standard for direct labor costs is 20 percent of cost of goods manufactured. How is RealTime Inc. performing as compared to this industry standard? Explain. RealTime Inc. Tral Balance December 31, 20X1 CREDIT 6 00 Ololo o 7 6 0 0 0 1 0 0 0 0 0 3 500 5000000 520 olo o 70oooo 50 olo o 6 0 0 0 0 0 0 30 000 olo o 1 960oOo 1 5 0 0 0 0 0 0 1 960 000 300 odoo 6 00 Olo o 8 60ooool - L ACCOLINT NAVE Cash Accounts Receivable Allowance for Doubtw Accounts Aow Materials Inventory Work Process inventory Anished Goods entory Prepaid Insurance Roctory Supplies Land Factory Bioting Accumulated Depredation-Roctory Bilding Factory Machines Accumulated Depredation-Fodory Machines Office Furniture and Equipment Accumulated Deprecation-ofice Furniture and Equipment Accounts Payable Salaries and Wages Payable Income Tax Poyable Social Security Tax Poyable Medicare Ton Payable Employee come Tor Poyable Common Stock Retched Earnings Soles Sales Returns and Alowances Materials Purchases Purchases Returns and Allowances Rreighton Direct Labor Indirect Labor Payrol Tones Expenses-Factory Lelles-Factory Reports and Maintenance-Factory Indirect Materials and Supples Deprecation-Factory wang Depreciation Factory Machines Insurance-Factory Property Tones-Factory Sales Solares Expense Powol Tones Expense-Sales Delivery Expense Advertising Expense Uncollective Accounts Expense Miscellaneous Seling Expense Officers' Salaries Expense Office Sales Expense Poyrol Toxes Expense-Administrative Depreciation Expenseance Future and Equipment Other Administrave Expenses Income Tax Expense Totals 110 00 Olo o 49 330 000 1 0 0 5 5 0 OOO 6 50 000 26 2 0 0 0 0 0 3 0 0 0 0 0 1 1 0 0 0 0 0 1 9 1 0 0 0 0 0 3 0 0 0 0 0 0 306 000 9 0 0 0 0 0 3 4 0 0 0 0 3 0 0 0 0 0 7 0 0 0 0 0 9 5 0 0 0 0 0 950 0 0 0 6 0 0 0 0 0 6 00 Olo o 750 Olo oll 1 550 0 0 0 0 5 000 000 1 950 000 60ooo 1 1 0 0 0 0 0 17440000017 4400 000 Analyze: Assume that the industry standard for direct labor costs is 20 percent of cost of goods manufactured. How is Real Time Inc. performing as compared to this industry standard? Explain. Problem 26.2A Preparing a statement of cost of goods manufactured, an income statement, a statement retained earnings, and a balance sheet; completing the worksheet; recording adjusting, clos and reversing entries. Objectives 26-1, 26-3, 26-4, 26-5, 26-6, 26-7, 26-8 RealTime Inc. manufactures parts for computers. The Trial Balance section of its worksheet and other year-end data follow. INSTRUCTIONS 1. Prepare a 12-column manufacturing worksheet for the year ended December 31, 20X1. Enter the trial balance in the first two 2. Using the data given, enter the adjustments. Then complete the worksheet. Label all inventory adjustments as (a). 3. Prepare a statement of cost of goods manufactured. 4. Prepare an income statement. 5. Prepare a statement of retained earnings. Additional data needed is as follows: a. Balance of Retained Earnings on January 1 was $603,300. b. Dividends declared and paid on common stock during the year amounted to $110,000. c. There were no changes in any other stockholders' equity accounts. 6. Prepare a balance sheet as of December 31, 20X1. There are 110.000 shares of $1 par common stock outstanding, out of the shares authorized. 7. Record the adjusting entries shown on the worksheet in general journal form. For each journal entry, use the letter that ident adjustment on the worksheet. Make a separate entry for each inventory adjustment. Do not give explanations. 8. Prepare the closing entries for all accounts involved in the cost of goods manufactured. 9. Prepare the closing entries for all revenue and expense accounts and the Manufacturing Summary account. 10. Prepare the closing entry to close the Income Summary account. 11. Journalize the reversing entries. Date the entries January 1, 20X2. YEAR-END DATA a. Physical inventories taken on December 31, 20X1. show $31.000 of raw materials on hand and $45,000 of finished goods on han work in process inventory is estimated to be $48.000 on the same date. b. It is estimated that 2 percent of the outstanding accounts receivable might not be collectible. c. Of the prepaid insurance, $4,900 covering the factory building and equipment has expired. d. A physical inventory discloses $4.400 of factory supplies on hand at the end of the period. e. Depreciation expense for the year is as follows: $9,800 on the factory building, $9,800 on the factory machines, and $3,000 on th office furniture. (Make a compound entry.) f. Payroll accruals at the end of the period include $3.500 of direct labor and $500 of indirect labor. g. Payroll taxes on accrued wages are social security, 6.2 percent, and Medicare tax, 1.45 percent. h. Use an income tax rate of 25 percent. (Round to nearest dollar). Pag Realtime in Tablice December 11 221 LILL TODO Casa ACCORD AIDA Row Materih Tony And God Repair factory Land Factory Acued produry Pacoy Moches Anete Dupreden-Rody Mees Toteutture and Assunta Deprestare and E Ello 760000 TIL 25000 500000 520000 200000 Solaco E000000 2000000 TITI 15 0 0 0 0 30000 doo TELE 156 doo doel Sobre nemoges Powe come POGON Society for Ryobile Cobra loyee color Cannon Sud Dhe is Solomon Alons Mersuche Par and we AN 1000000 29200000 TOOSSO 00 GGOOD 262000 HII 2000 1000 121000 2000 2016000 DODO 400 So cool odbor Paradoxes Bapetes-Factory TUIstory Repairs and Merce-Fectory natred Material and Supplies predactory outing Depreciation Factory Mode murance-Fadwy opty-sty Soms Shoes Paroles pense-SOR Taylipenie AO Open Uno Apense MODNI Senge Tom Sobre Orice Sales Expense Payrol Toms Destante pense-offor Ford Toogoo 5000 S5ooo SOCO SODOO 2500 15 500 500DOG 196000 TI Degredo Other Alpe come opene 50000 10000 72000OZZOQOOS Analyze: Assume that the industry standard for direct labor costs is 20 percent of cost of goods manufactured. How is RealTime Inc. performing as compared to this industry standard? Explain