Spreadsheet
Lundberg Company had the following trial balance columns on its spreadsheet: The trial balance of Lundberg Company is shown in its spreadsheet.
Data for adjusting the accounts are as follows:
| (a) | Factory overhead to be applied to work in process ending inventory | $3,100 |
| (b) | Estimate of this year's sales that will be returned next year | 580 |
| (c) | Cost of goods expected to be returned | 260 |
| (d) | Interest receivable | 70 |
| (e) | Interest payable | 620 |
| (f) | Estimate of uncollectible accounts, based on an aging of accounts receivable | 2,400 |
| (g) | Office supplies consumed | 2,900 |
| (h) | Factory supplies consumed | 3,300 |
| (i) | Factory building depreciation | 5,000 |
| (j) | Factory equipment depreciation | 4,000 |
| (k) | Overapplied factory overhead | 1,470 |
| (l) | Provision for corporate income taxes | 6,100 |
| (m) | Physical counts of the inventories agreed with the amounts in the books. | |
Additional information needed to prepare the financial statements is as follows:
| Beginning inventories: | |
| Finished goods, January 1 | $19,000 |
| Work in process, January 1 | 7,400 |
| Materials inventory, January 1 | 9,600 |
| Materials purchases for the year | 40,190 |
| Direct labor | 70,000 |
| Actual factory overhead | 90,940 |
| Indirect materials charged to production | 3,400 |
Required:
1. Prepare a 6-column spreadsheet.
Enter factory overhead and cost of goods sold amounts in the order presented.
Adjusting Entries and Financial Statements
The adjusted trial balance of Lundberg Company is shown.
Additional information needed to prepare the financial statements is as follows:
| Beginning inventories: | |
| Finished goods, January 1 | $17,000 |
| Work in process, January 1 | 7,300 |
| Materials inventory, January 1 | 9,400 |
| Estimated returns inventory, January 1 | 50 |
| Materials purchases for the year | 31,810 |
| Direct labor | 80,000 |
| Actual factory overhead | 90,920 |
| Indirect materials included in overhead | 3,500 |
Required:
2. Prepare financial statements and schedule.
Prepare a schedule of costs manufactured for the year ended December 31, 20--.
Lundberg Company End-of-Period Spreadsheet For Year Ended December 31, 20-- Trial Balance Adjustments Debit Credit Debit Credit Adjusted Trial Balance Account Title Debit Credit Cash 30,300.00 Government Notes 5,000.00 Interest Receivable Accounts Receivable 34,000.00 Allow. for Doubtful Accounts 530.00 24,000.00 9,000.00 8,400.00 Finished Goods Inventory Work in Process Inventory Materials Inventory Estimated Returns Inventory Office Supplies Factory Supplies 70.00 3,100.00 3,800.00 Land 100,000.00 120,000.00 Factory Building Accum. Depr.-Factory Build. 10,000.00 Factory Equipment 40,000.00 5,000.00 13,800.00 110.00 Accum. Depr.-Factory Equip. Accounts Payable Customer Refunds Payable Income Tax Payable Interest Payable Bonds Payable Capital Stock Paid-In Capital in Excess of Par Retained Earnings Cash Dividends 80,000.00 50,000.00 30,000.00 92,820.00 30,000.00 Sales 410,740.00 Sales Returns and Allowances 6,100.00 Interest Revenue 200.00 Factory Overhead 78,630.00 89,300.00 Cost of Goods Sold 190,700.00 70,000.00 Wages Expense Office Supplies Expense Bad Debt Expense Utilities Expense-Office Interest Expense Income Tax Expense 4,400.00 7,000.00 18,000.00 782,500.00 782,500.00 Net Income Lundberg Company Adjusted Trial Balance December 31, 20-- Adjusted Trial Balance Account Title Debit Credit Cash 30,300.00 Government Notes 5,000.00 Interest Receivable 75.00 34,000.00 3,040.00 24,000.00 11,100.00 8,600.00 310.00 200.00 500.00 100,000.00 120,000.00 15,000.00 40,000.00 9,000.00 Accounts Receivable Allow. for Doubtful Accounts Finished Goods Inventory Work in Process Inventory Materials Inventory Estimated Returns Inventory Office Supplies Factory Supplies Land Factory Building Accum. Depr.-Factory Build. Factory Equipment Accum. Depr.-Factory Equip. Accounts Payable Customer Refunds Payable Income Tax Payable Interest Payable Bonds Payable Capital Stock Paid-In Capital in Excess of Par Retained Earnings Cash Dividends Sales Sales Returns and Allowances Interest Revenue Factory Overhead Cost of Goods Sold 13,800.00 690.00 6,200.00 620.00 80,000.00 50,000.00 30,000.00 91,680.00 30,000.00 410,740.00 6,570.00 475.00 92,400.00 92,400.00 188,970.00 Wages Expense 70,000.00 Office Supplies Expense 2,900.00 Bad Debt Expense 2,500.00 4,400.00 Utilities Expense-Office Interest Expense Income Tax Expense 7,620.00 24,200.00 803,645.00 803,645.00 Lundberg Company Schedule of Cost of Goods Manufactured For Year Ended December 31, 20-- Direct materials Materials available $ Cost of materials used Cost of direct materials used S Total manufacturing costs Total work in process during the period S Cost of goods manufactured Prepare an income statement for the year ended December 31, 20--. Lundberg Company Income Statement For Year Ended December 31, 20-- $ Net sales Cost of goods sold: Cost of goods available for sale Cost of goods sold Gross profit Operating expenses: s Gross profit Operating expenses: Total operating expenses Operating income Other revenue: s Other expense: Income before income taxes S Net income Prepare a statement of retained earnings for the year ended December 31, 20--. Lundberg Company Statement of Retained Earnings For the Year Ended December 31, 20-- Prepare a balance sheet as of December 31, 20- Lundberg Company Balance Sheet December 31, 20-- Assets Current assets: $ Inventories: Total current assets Property, plant, and equipment: $ Total property, plant, and equipment Total assets Liabilities Current liabilities: Total current liabilities Long-term liabilities: Total liabilities Stockholders' Equity s Total stockholders' equity Total liabilities and stockholders' equity Lundberg Company End-of-Period Spreadsheet For Year Ended December 31, 20-- Trial Balance Adjustments Debit Credit Debit Credit Adjusted Trial Balance Account Title Debit Credit Cash 30,300.00 Government Notes 5,000.00 Interest Receivable Accounts Receivable 34,000.00 Allow. for Doubtful Accounts 530.00 24,000.00 9,000.00 8,400.00 Finished Goods Inventory Work in Process Inventory Materials Inventory Estimated Returns Inventory Office Supplies Factory Supplies 70.00 3,100.00 3,800.00 Land 100,000.00 120,000.00 Factory Building Accum. Depr.-Factory Build. 10,000.00 Factory Equipment 40,000.00 5,000.00 13,800.00 110.00 Accum. Depr.-Factory Equip. Accounts Payable Customer Refunds Payable Income Tax Payable Interest Payable Bonds Payable Capital Stock Paid-In Capital in Excess of Par Retained Earnings Cash Dividends 80,000.00 50,000.00 30,000.00 92,820.00 30,000.00 Sales 410,740.00 Sales Returns and Allowances 6,100.00 Interest Revenue 200.00 Factory Overhead 78,630.00 89,300.00 Cost of Goods Sold 190,700.00 70,000.00 Wages Expense Office Supplies Expense Bad Debt Expense Utilities Expense-Office Interest Expense Income Tax Expense 4,400.00 7,000.00 18,000.00 782,500.00 782,500.00 Net Income Lundberg Company Adjusted Trial Balance December 31, 20-- Adjusted Trial Balance Account Title Debit Credit Cash 30,300.00 Government Notes 5,000.00 Interest Receivable 75.00 34,000.00 3,040.00 24,000.00 11,100.00 8,600.00 310.00 200.00 500.00 100,000.00 120,000.00 15,000.00 40,000.00 9,000.00 Accounts Receivable Allow. for Doubtful Accounts Finished Goods Inventory Work in Process Inventory Materials Inventory Estimated Returns Inventory Office Supplies Factory Supplies Land Factory Building Accum. Depr.-Factory Build. Factory Equipment Accum. Depr.-Factory Equip. Accounts Payable Customer Refunds Payable Income Tax Payable Interest Payable Bonds Payable Capital Stock Paid-In Capital in Excess of Par Retained Earnings Cash Dividends Sales Sales Returns and Allowances Interest Revenue Factory Overhead Cost of Goods Sold 13,800.00 690.00 6,200.00 620.00 80,000.00 50,000.00 30,000.00 91,680.00 30,000.00 410,740.00 6,570.00 475.00 92,400.00 92,400.00 188,970.00 Wages Expense 70,000.00 Office Supplies Expense 2,900.00 Bad Debt Expense 2,500.00 4,400.00 Utilities Expense-Office Interest Expense Income Tax Expense 7,620.00 24,200.00 803,645.00 803,645.00 Lundberg Company Schedule of Cost of Goods Manufactured For Year Ended December 31, 20-- Direct materials Materials available $ Cost of materials used Cost of direct materials used S Total manufacturing costs Total work in process during the period S Cost of goods manufactured Prepare an income statement for the year ended December 31, 20--. Lundberg Company Income Statement For Year Ended December 31, 20-- $ Net sales Cost of goods sold: Cost of goods available for sale Cost of goods sold Gross profit Operating expenses: s Gross profit Operating expenses: Total operating expenses Operating income Other revenue: s Other expense: Income before income taxes S Net income Prepare a statement of retained earnings for the year ended December 31, 20--. Lundberg Company Statement of Retained Earnings For the Year Ended December 31, 20-- Prepare a balance sheet as of December 31, 20- Lundberg Company Balance Sheet December 31, 20-- Assets Current assets: $ Inventories: Total current assets Property, plant, and equipment: $ Total property, plant, and equipment Total assets Liabilities Current liabilities: Total current liabilities Long-term liabilities: Total liabilities Stockholders' Equity s Total stockholders' equity Total liabilities and stockholders' equity
