$\backslash$table$[[$Cash$,$Debit,Credit$],[$Accounta receivable,$71,000,],[$Raw materiala inventory,$40,000,],[$Work in procesa inventory,$25,000,],[$Finiahed goods inventory,$0,],[$Prepaid rent,$12,000,],[$Aecounta payable,$4,000,],[$Notes payable,,$10,000],[$Common atock,$13,000,],[$Retained earninga $($prior year$),40,000,],[$Sales$,94,000,],[$Cost of gooda aold,$171,000,],[$Factory overhead,$112,000,],[$Ceneral and adminiatrative expenses,$24,000,],[$Totala$,40,000,]]$

These six documents must be processed to bring the accounting records up to date.

$\backslash$table$[[$Materiala requiaition $10,,$$$,800$ direct materiala to Job $402],[$Materiala requiaition $11,,$$$,400$ direct materiala to Job $404],[$Materiala requiaition $121,$$$2,100$ indirect materiala$],[$Labor time ticket $52,,6,000$ direct labor to Job $402],[$Labor time ticket $53$ i$,$$$4,000$ direct labor to Job $404],[$Labor time ticket $54$ i$,5,000$ 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.

Problem $19-3$A $($Algo$)$ Parts $4$ and $5$

$4.$ Prepare an income statement for the year and a balance sheet as of December $31.$ Hint: Retained earnings is $$101,900$ at the end of the current year.

$5.$ Assume that the $$2,100$ on materials requlsition $12$ should have been direct materials charged to Job $404.$ Does this error result In overstatement or understatement of total assets?