Required:

$1.\backslash$& $2.$ Prepare a T$-$account for each account on the company's balance sheet, and enter the beginning balances. Make an entry directly into the T $-$accounts for transactions $($a$)$ through $($ m $).$ Determine an ending balance for each T $-$account. Note: Do not round intermediate calculations. $3-$a$.$ Was manufacturing overhead underapplied or overapplied for the year?

$3-$b$.$ Assume that the company allocates any overhead balance among the Work in Process, Finished Goods, and Cost of Goods Sold accounts, using the overall balances in each account. Prepare a journal entry to show the allocation. Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Round allocation percentages to one decimal place.

Journal entry worksheet

$1$

Record the entry to allocation of over applied overhead to the other account on the bases of amount of overhead apply during the year in the ending balance each account.

Note: Enter debits before credits. $4.$ Prepare an income statement for the year.

$\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|\}$

$\backslash$hline $\backslash$multicolumn$\{2\}\{|$c$|\}\{$ PQB Inc. $\}\backslash \backslash$

$\backslash$multicolumn$\{2\}\{|$c$|\}\{$ For the Year Ended December $31\}\backslash \backslash$

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$\backslash$hline Selling and administrative expenses: & & $\backslash \backslash$

$\backslash$hline & & $0\backslash \backslash$

$\backslash$hline & & $\backslash (\backslash$$ $\backslash )\backslash \backslash$

$\backslash$hline & & $0\backslash \backslash$

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$\backslash$end$\{$tabular$\}$