Required Information Problem 2-3A (Algo) Computing and recording job costs; preparing income statement and balance sheet LO P1, P2, P3, P4 [The following Information applies to the questions displayed below] Bergo Bay's accounting system generated the following account balances on December 31. The company's manager knows something is wrong with this list of balances because it does not show any balance for Work in Process Inventory, and the accrued factory payroll (Factory Wages Payable) has not been recorded. Cash Notes payable Sales Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Common stock Retained earnings (prior year) Cost of goods sold Debit $ 70,000 39,000 Credit 24,500 0 9,000 3,000 $ 10,700 13,700 30,000 78,000 192,100 Factory overhead 105,000 27,000 General and administrative expenses 47,000 Totals $324,500 $324,500 These six documents must be processed to bring the accounting records up to date. Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor time ticket 52: Labor time ticket 53: Labor time ticket 54: $ 4,900 direct materials to Job 402 $7,700 direct materials to Job 404 $1,600 indirect materials $ 5,000 direct labor to Job 402 $ 15,000 direct labor to Job 404 $ 5,000 indirect labor Jobs 402 and 404 are the only jobs in process at year-end. The predetermined overhead rate is 100% of direct labor cost Problem 2-3A (Algo) Part 4 4. Prepare an income statement for the year and a balance sheet as of December 31. Hint Retained earnings is $104,500 at the end of the current year. Answer is complete but not entirely correct. Complete this question by entering your answers in the tahe holow Complete this question by entering your answers in the tabs below. Income Statement Balance Sheet Prepare a balance sheet as of December 31. BERGO BAY COMPANY Balance Sheet As at December 31 Assets Cash Accounts receivable Prepaid rent S 70,000 39,000 3,000 Inventories Raw materials inventory 10,300 Work in process inventory 52,600 Finished goods inventory 9,000 71,900 Total assets $ 183,900 Liabilities Notes payable Accounts payable Factory wages payable S 23,700 10,700 25,000 Total liabilities 59,400 Equity Common stock 30,000 Retained earnings 104,500 Total equity Total liabilities and equity 134,500 193,900