College Accounting: Chapter 27 Mastery Problem - Reese Manufacturing Company manufactures

College Accounting Chapter 27 Mastery Problem Reese Manufacturing Company manufactures and sells a limited line of products made to customer order. The company uses a perpetual inventory system and keeps its accounts on a calendar year basis. A 10-column work sheet is presented on page 1086. Reese Manufacturing Company Worksheet For Year Ended December 31, 20-- Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Account Title Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash 49,423 49,423 49,423 Accounts receivable 78,096 78,096 78,096 Allowance for bad debts 5,074 g 956 6,030 6,030 Finished goods inventory 42,675 42,675 42,675 Work in process inventory 39,675 i 1,567 41,242 41,242 Materials inventory 22,353 22,353 22,353 Office supplies 3,546 b 800 2,746 2,746 Factory supplies 1,878 c 1,389 489 489 Prepaid insurance 1,500 f 1,454 46 46 Factory equipment 186,674 186,674 186,674 Accum Depr - Factory equipment 23,501 e 12,553 36,054 36,054 Office Equipment 46,986 46,986 46,986 Accum Depr - Office equipment 2,916 d 923 3,839 3,839 Notes payable 12,470 12,470 12,470 Interest payable a 132 132 132 Accounts payable 10,356 10,356 10,356 Income tax payable h 45,725 45,725 45,725 Capital stock 72,000 72,000 72,000 Retained earnings 195,341 195,341 195,341 Cash dividends 36,000 36,000 36,000 Sales 532,027 532,027 532,027 Factory overhead 52,356 65,446 c 1,389 i 1,567 67,654 67,654 e 12,553 j 641 f 1,356 Cost of goods sold 281,407 j 641 282,048 282,048 Wages expense 58,380 58,380 58,380 Advertising expense 11,450 11,450 11,450 Office rent expense 5,443 5,443 5,443 Office supplies expense b 800 800 800 Bad debt expense g 956 956 956 Depr Exp - Factory Equipment f 98 98 98 Depr Exp - Office Equipment d 923 923 923 Interest expense 1,289 a 132 1,421 1,421 Income tax expense h 45,725 45,725 45,725 $919,131 $919,131 $66,140 $66,140 $981,628 $981,628 407,244 532,027 506,730 381,947 Net income 124,783 124,783 $532,027 $532,027 $506,730 $506,730 Additional information needed to prepare the income statement and schedule of cost of goods manufactured is as follows: Finished goods inventory, January 1 85,454 Materials inventory, January 1 11,633 Purchases for the year 96,437 Direct labor 107,740 Work in process inventory, January 1 22,600 Indirect materials charged to production 3,200 REQUIRED 1. Prepare an income statement and schedule of cost of goods manufactured for the year ended December 31, 20--. 2. Prepare a retained earnings statement for the year ended December 31, 20--. 3. Prepare a balance sheet as of December 31, 20--. 4. Prepare the adjusting, closing, and reversing entries.
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