Holding Company makes shipping containers. The Trial Balance section of its worksheet and other year-end data follow.

INSTRUCTIONS
1. Prepare a 12-column manufacturing worksheet for the fiscal year ended December 31, 2019. Enter the trial balance in the first two columns.
2. Using the data given, enter the adjustments and complete the worksheet. Label all inventory adjustments as (a).
3. Prepare a statement of cost of goods manufactured.
4. Prepare an income statement.
5. Prepare a statement of retained earnings. Additional data follows:
a. Balance of Retained Earnings, January 1, was $185,000.
b. Dividends declared and paid on common stock during the year were $10,000.
6. Prepare a balance sheet as of December 31, 2019. Common Stock, $1 par, was authorized for 100,000 shares and 50,000 shares were outstanding.
7. Record the adjusting entries shown on the worksheet in general journal form. For each journal entry, use the letter that identifies the adjustment on the worksheet. Make a separate entry for each inventory adjustment. Do not give explanations.
8. Prepare the closing entries for all accounts involved in the cost of goods manufactured.
9. Prepare the closing entries for all revenue and expense accounts and the Manufacturing Summary account.
10. Prepare the closing entry to close the Income Summary account.
11. Journalize the reversing entries. Date the entries January 1, 2020.

YEAR-END DATA
a. Ending inventories: finished goods, $25,000; work in process, $36,000; and raw materials, $21,000.
b. Estimated uncollectible accounts: increase Allowance for Uncollectible Accounts to 4 percent of Accounts Receivable.
c. Expired insurance, $2,000; debit the Insurance€”Factory account for the amount of the necessary adjustment.
d. Factory supplies on hand, $1,000.
e. Depreciation for the year: on factory building, $15,000; on factory machinery, $5,000; and on office equipment, $2,000.
f. Accrued factory wages: direct labor, $1,800; indirect labor, $200.
g. Accrued payroll taxes: social security, $124; Medicare tax, $29.
h. Total income tax expense for the year, $34,212.
Analyze: Assume that the industry standard for direct labor costs in its manufacturing industry is 31 percent of costs of goods manufactured. How does this company compare to others in regard to this standard? Explain.

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Holding Company Trlal Balance December 31, 2019 DEBIT ACCOUNT NAME CREDIT 5 이이이이0 이 6 00000 이 Cash Accounts Receivable Allowance for Doubtful Accounts Raw Materials Inventory Work in Process Inventory Finished Goods Inventory 20000 0 3 00000 0 400000 이 2 6 0 000 0|| 24000 0 50000 0 8 0 0000 0 1500000 0이 Prepaid Insurance Factory Supplies Land Factory Building Accumulated Depreciation-Factory Building Factory Machines Accumulated Depreciation-Factory Machines Office Furniture and Equipment Accumulated Depreciation-Office Furniture and Equipment Accounts Payable Salaries and Wages Payable Income Tax Payable Social Security Tax Payable Medicare Tax Payable Employee Income Tax Payable Common Stock Retained Earnings 6 0 0 0 00 o 5 ololololo ol| 2000010 이 2 00000 o 8 0 000 ol 4 60000 이 5000 00 0 175 0 0 00 o| 1106 5 000 o Sales Sales Returns and Allowances Materials Purchases Purchases Returns and Allowances Freight In Direct Labor Indirect Labor Payroll Taxes-Factory Utilities-Factory Repairs and Maintenance-Factory Indirect Materials and Supplies Depreciation-Factory Building Depreciation-Factory Machines Insurance-Factory Property Taxes-Factory Sales Salaries Expense Payroll Taxes Expense-Sales Delivery Expense Advertising Expense Uncollectible Accounts Expense Miscellaneous Selling Expense Officers' Salaries Expense Office Salaries Expense Payroll Taxes Expense-Administrative Depreciation Expense-Office Furniture and Equipment Other Administrative Expenses Income Tax Expense Manufacturing Summary Income Summary Totals 1 65000 0 30이0000이 5 0000 0 91010010 이 16 00000 0 2 500000 1850000 3 00000 0 5100010 이 4100010 이 6ololoo oi 10000000 1 000000 기51000 0 2|이이이0 이 65000 0 18 500000 4 000000 220000 0 11000 0 1 600000 1472|5|이이0 이 1472|5|이이0 이