WORK SHEET, ADJUSTING ENTRIES, AND FINANCIAL STATEMENTS Herrera Company had the following trial balance columns on its work sheet:

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) Overapplied factory overhead .................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
REQUIRED
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) balancesheet

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WORK SHEET, ADJUSTING ENTRIES, AND FINANCIAL STATEMENTS Her Company had the following trial balance columns on its work sheet: Herrera Company Trial Balance December 31,20 -- ACCOUNTTTLE DEBITBALANCE OREDI TBALANCE 30 3 0 0 00 50 0 0 00 Cash Govemment Notes Interest Receivable 34 0 00 00 Accounts Receivable 5 3 0 00 Allowance for Bad Debts 24 0 0 0 00 9 00 0 00 8500 00 3100 00 3800 00 100 0 0 0 00 120 0 0 0 00 Finished Goods Inventory Workin Process Inventory Materials Inventory Office Supplies Factory Supplies Land Factory Building 10 00 0 00 Accumulated Depredation-Factory Building 40 0 0 0 00 Factory Equipment 500 0 00 Accumulated Depredation-Factory Equipment Interest Payable 80 0 00 Accounts Payable Income Tax Paya ble 80 0 0 0 00 50 0 0 0 00 30 0 0 0 00 92 4 0 0 00 Bonds Payable Capital Stock Paid-In Capital in Excess of Par Retained Earnings 30 0 0 0 00 Cash Dividends 405 100 00 30 0 00 Sales Interest Revenue 78 6 3 0 00 Factory Overhead 89 30 000 190 70 0 00 70 0 0 0 00 Cost of Goods Sold Wages Expense Office Supplies Expense Bad Debt Expense 4 400 00 70 0 0 00 18 0 0 0 00 Utilities Expense Office Interest Expense Income Tax Expense 776 4 30 00 776 4 3 0 00