College Accounting: P27-6A Herrera Company had the following trial balance columns

College Accounting
P 27-6A Work sheet, adjusting entries, and financial statements
Herrera Company had the following trial balance columns on its work sheet.
Herrera Company
Trail Balance
December 31, 20—
Account Title Debit Balance Credit Balance
Cash 30,300.00
Government Notes 5,000.00
Interest Receivable
Accounts Receivable 34,000.00
Allowance for Bad Debts 530.00
Finished Goods Inventory 24,000.00
Work in Process Inventory 9,000.00
Materials Inventory 8,500.00
Office-Supplies 3,100.00
Factory Supplies 3,800.00
Land 100,000.00
Factory Building 120,000.00
Accumulated Depreciation—Factory Building 10,000.00
Factory Equipment 40,000.00
Accumulated Depreciation—Factory Equipment 5,000.00
Interest Payable
Accounts Payable 13,800.00
Income Tax Payable
Bonds Payable 80,000.00
Capital Stock 50,000.00
Paid-In Capital in Excess of Par 30,000.00
Retained Earnings 92,400.00
Cash Dividends 30,000.00
Sales 405,100.00
Interest Revenue 300.00
Factory Overhead 78,630.00

Cost of Goods Sold 190,700.00
Wages Expense 70,000.00
Office Supplies Expense
Bad Debt Expense
Utilities Expense---Office 4,400.00
Interest Expense 7,000.00
Income Tax Expense 18,000.00
776,430.00 776,430.00

Data for adjusting the accounts are as follows:
a. Factory overhead to be applied to work in process ending inventory $3,100
b. Interest receivable $75
c. Interest payable 600
d. Estimate of uncollectible accounts based on an aging of accounts receivable 2,930
e. Office supplies consumed 2,900
f. Factory supplies consumed 3,300
g. Factory building depreciation 5,000
h. Factory equipment depreciation 4,000
i. Over applied factory 1,470
j. Provision for corporate income taxes 6,100
k. 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 $18,000
Work in process, January 1 7,300
Materials inventory, January 1 9,500
Materials purchases for the year 51,500
Direct labor 60,000
Actual factory overhead 90,930
Indirect materials charged to production 3,400

1. Prepare a work sheet
2. Prepare the following financial statements and schedule:
a. Income statement
b. Schedule of cost of goods manufactured
c. Retained earnings statement
d. Balance sheet
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