Revised Jordan Company Trial Balance (for the year ended December 31, 2017) Category Debit ($) Credit ($) Totals Raw Materials Inventory Goods in Process Inventory Job X Job Y TotalProblem 1 Solve the given problem based on the following information. The trial balance for Jordan Company on December 31, 2017, is incorrect. The accounting department was able to identify this error because there are zero inventories for goods in process, but facility payroll and facility overhead accounts are showing balances. Incorrect Jordan Company Trial Balance (for the year ended December 31, 2017) Category Debit ($) Credit ($) Cash 112,200 Accounts receivable 82,500 Raw materials inventory 88,000 Goods in process inventory 0 Finished goods inventory 16,500 Prepaid rent 3,300 Accounts payable 18,700 Notes payable 27,500 Common stock 55,000 Retained earnings 298, 100 Sales 410,300 Cost of goods sold 239,800 Facility payroll 74,800 Facility overhead 126,500 Operating expenses 66,000 Totals 809,600 809,600 The accounting department has identified six documents that must be processed in order to update the trial balance. The following six entries must be posted to the trial balance: Missing Entries in Trial Balance Materials requisition 10 $11,220 direct materials to Job X Materials requisition 11 $20,460 direct materials to Job Y Materials requisition 12 $6, 160 indirect materials OIRON- Labor time ticket 6052 $39,600 direct labor to Job X Labor time ticket 6053 $26, 180 direct labor to Job Y Labor time ticket 6054 $9,020 indirect laborPreparejournal entries using the data from the table above to assign costs. Journal Entries Direct materials costs to goods in process inventory: Goods in Process Inventory Raw Materials Inventory Direct labor costs to goods in process inventory: Goods in Process Inventory Factory Payroll Overhead costs to goods in process inventory: Goods in Process Inventory Factory Overhead To allocate overhead costs to Jobs X and 'I' at 2% of direct labor cost assigned. Indirect rnaterials costs to the facility overhead account: Factory Overhead Raw Materials Inventory Indirect labor costs to the facility overhead account: Factory Overhead Factory Payroll Once you have completed the journal entries, create a revised balance for the facility overhead account, reflecting the changes. Is there any under- or overapplied overhead for the year? Allocate any over- or underapplied overhead to the cost of goods sold in the adjusted entries. (Assume the amount is not material.) Revised Facility Overhead Account Debit/Credit Ending balance from trial balance Applied to Jobs X and Y Additional indirect materials Additional indirect labor Underapplied overhead Dec. 31 Cost of Goods Sold Factory OverheadPrepare the income statement for the year. Jordan Company Income Statement (for the year ended December 31, 2017) Sales Cost of goods sold Gross profit Operating expenses Net incomePrepare the balance sheet for the year. Jordan Company Balance Sheet (for the year ended December 31, 2017) Assets Cash Accounts receivable Inventories Raw materials inventory Goods in process inventory Finished goods inventory Prepaid rent Total assets Liabilities and equity Accounts payable Notes payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and equity