Required information [The following information applies to the questions displayed below.] 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 Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable $ 80,000 49,000 29,500 12,000 4,000 $ 9,000 Notes payable 12,000 Common stock Retained earnings (prior year) Sales Cost of goods sold 40,000 90,000 193,500 Factory overhead General and administrative expenses 103,000 25,000 42,000 Totals $ 344,500 $ 344,500 These six documents must be processed to bring the accounting records up to date. Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor time ticket 52: Labor time ticket 53: Labor time ticket 54: $ 5,000 direct materials to Job 402 $ 7,500 direct materials to Job 404 $ 1,700 indirect materials $ 7,000 direct labor to Job 402 $ 13,000 direct labor to Job 404 $ 5,000 indirect labor Jobs 402 and 404 are the only jobs in process at year-end. The predetermined overhead rate is 100% of direct labor cost. 4. Prepare an income statement for the year and a balance sheet as of December 31. Hint: Retained earnings is $126,800 at the end of the current year. Complete this question by entering your answers in the tabs below. Income Statement Balance Sheet Prepare an income statement. BERGO BAY COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit General and administrative expenses $ 193,500 115,000 78,500 42,000 $ 36,500 Required information Cash Accounts receivable As at December 31 Assets Inventories Raw materials inventory Work in process inventory Finished goods inventory Total assets Accounts payable Factory wages payable Notes payable Total liabilities Common stock Retained earnings Total equity Liabilities $ 80,000 49,000 12,000 12,000 $ 141,000 $ 9,000 20,000 12,000 41,000 Equity 40,000 90,000 130,000 Total liabilities and equity $ 171,000