Student Name:
Class:
39,000
22,000
192,500
214,500
20,000
194,500
195,000
36,000
23,000
24,000
5,000
6,000
5,000
4,500
9,000
8,000
120,500
510,000
549,000
36,000
513,000
Correct!
1,000,000
5,500
994,500
35,000
513,000
548,000
30,000
518,000
476,500
120,000
12,000
8,000
DOOLEY MANUFACTURING COMPANY
DOOLEY MANUFACTURING COMPANY
Year Ended December 31, 2013
Statement of Cost of Goods Manufactured
Income Statement
Year Ended December 31, 2013
Depreciation – Factory Equipment
Depreciation – Factory Building
Cost of Goods Sold
Net Sales
Less Sales Returns and Allowances
Sales
Revenues
Gross Profit
Cost of Goods Sold
Less Finished Goods Inventory, December 31
Total Goods Available for Sale
Cost of Goods Manufactured
Finished Goods Inventory, January 1
Delivery Expense
Payroll Taxes Expense – Sales Salaries
Sales Salaries Expense
Selling Expenses
Operating Expenses
Problem 26.01A
McGraw-Hill/Irwin
Instructor
Cost of Goods Manufactured
Less Work in Process Inventory, December 31
Total Work in process for Year
Total Manufacturing Costs
Total Manufacturing Overhead
Property Taxes – Factory
Insurance – Factory
Indirect Labor
Manufacturing Overhead
Direct Labor
Raw Materials Used
Indirect Materials and Supplies
Repairs and Maintenance – Factory
Utilities – Factory
Payroll Taxes – Factory
Raw Materials
Work in Process, January 1
Less Raw Materials, December 31
Total Materials Available
Materials Purchases
Raw Materials, January 1
9,000
25,000
174,000
150,000
45,000
19,500
3,000
217,500
391,500
85,000
21,250
63,750
Correct!
Advertising Expense
Payroll Taxes Expense – Administrative
Office Salaries Expenses
Officers‘ Salaries Expense
Administrative Expenses
Total Selling Expenses
Miscellaneous Selling Expenses
Net Income After Income Taxes
Income Tax Expense
Net Income Before Income Taxes
Total Operating Expenses
Total Administrative Expenses
Other Administrative Expenses
Department
A
1,000,000$
5,500
192,500
195,000
36,000
23,000
24,000
5,000
6,000
5,000
4,500
9,000
8,000
120,000
12,000
8,000
9,000
25,000
150,000
45,000
19,500
Income Tax Expense
Other Administrative Expenses
Work in Process Inventory
Finished Goods Inventory
22,000 20,000
December 31, 2013
Given Data P26.01A
Selected Account Balances
DOOLEY MANUFACTURING COMPANY
Raw Materials Inventory
Student Name:
Class:
Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
50,000 50,000 50,000
75,000 75,000 75,000
2,000 b 250 2,250 2,250
25,000 a 21,000 a 25,000 21,000 21,000
40,000 a 38,000 a 40,000 38,000 38,000
42,000 a 35,000 a 42,000 35,000 35,000
6,000 c 5,000 1,000 1,000
4,000 d 500 3,500 3,500
50,000 50,000 50,000
200,000 200,000 200,000
20,000 e 10,000 30,000 30,000
100,000 100,000 100,000
20,000 e 10,000 30,000 30,000
20,000 20,000 20,000
4,000 e 2,000 6,000 6,000
76,000 76,000 76,000
f 2,000 2,000 2,000
h 2,149 2,149 2,149
g124 124 124
g29 29 29
100,000 100,000 100,000
248,500 248,500 248,500
995,500 995,500 995,500
5,500 5,500 5,500
252,000 252,000 252,000
2,000 2,000 2,000
10,000 10,000 10,000
181,000 f 1,800 182,800 182,800
20,000 f 200 20,200 20,200
20,600 g 153 20,753 20,753
8,000 8,000 8,000
2,400 2,400 2,400
2,000 d 500 2,500 2,500
e 10,000 10,000 10,000
e 10,000 10,000 10,000
c 5,000 5,000 5,000
6,000 6,000 6,000
85,000 85,000 85,000
8,500 8,500 8,500
5,000 5,000 5,000
5,000 5,000 5,000
b250 250 250
6,500 6,500 6,500
145,000 145,000 145,000
40,000 40,000 40,000
18,500 18,500 18,500
e 2,000 2,000 2,000
5,000 5,000 5,000
30,000 h 2,149 32,149 32,149
a 25,000 a 21,000 25,000 21,000 25,000 21,000
a 40,000 a 38,000 40,000 38,000 40,000 38,000
a 42,000 a 35,000 42,000 35,000 42,000 35,000
1,468,000 1,468,000 233,052 233,052 1,588,552 1,588,552 594,653 61,000 400,399 1,030,500 593,500 497,052
Correct! Correct! Correct! Correct! Correct! Correct! 533,653 533,653
594,653 594,653 934,052
Correct! Correct! 96,448 96,448
1,030,500 1,030,500 593,500 593,500
Correct! Correct! Correct! Correct!
40,000
25,000
252,000
2,000
10,000
260,000
285,000
21,000
264,000
182,800
20,200
20,753
8,000
2,400
2,500
10,000
10,000
5,000
6,000
84,853
531,653
571,653
38,000
533,653
Correct!
Raw Materials, January 1
Common Stock
Cost of Goods Manufactured
Total Manufacturing Overhead
Purchases Returns and Allowances
Materials Purchases
Sales Returns and Allowances
Work in Process, January 1
Total Materials Available
Depreciation – Factory Building
Indirect Materials and Supplies
Repairs and Maintenance – Factory
Total Work in process for Year
Total Manufacturing Costs
Retained Earnings
Net Delivered Cost of Raw Materials
Add Freight In
Less Purchase Returns and Allowances
Materials Purchased
Utilities – Factory
Payroll Taxes – Factory
Indirect Labor
Raw Materials Used
Less Raw Materials, December 31
Less Work in Process Inventory, December 31
Property Taxes – Factory
Insurance – Factory
Depreciation – Factory Machines
Salaries and Wages Payable
Accounts Payable
Accum. Deprec.-Off. Furn. & Equip.
Office Furniture and Equipment
Miscellaneous Selling Expense
Uncollectible Accounts Expense
Advertising Expense
Delivery Expenses
Sales
Medicare Tax Payable
Instructor
Year Ended December 31, 2013
Worksheet
BAY CORP.
Payroll Taxes Expense-Sales
Adjustments
Problem 26.02A
McGraw-Hill/Irwin
Trial Balance
Income Tax Payable
Raw Materials
Direct Labor
Manufacturing Overhead
Balance Sheet
Cost of Goods
Trial Balance
Statement
Adjusted
Income
Manufactured
Social Security Tax Payable
Income Tax Expense
Other Administrative Expenses
Depr. Expense-Off. Furn. & Equip.
Payroll Taxes Expense-Admin.
Office Salaries Expense
Officers’ Salaries Expense
Factory Supplies
Prepaid Insurance
Finished Goods Inventory
Accum. Depreciation-Fac. Mach.
Factory Machines
Accum. Depreciation-Fac. Bldg.
Factory Building
Account Name
Net Income
Cost of Good Manufactured
Income Summary
Manufacturing Summary
Sales Salaries Expense
Work in Process Inventory
Indirect Labor
Insurance-Factory
Depreciation-Factory Machines
Depreciation-Factory Building
Indirect Materials and Supplies
Cash
Raw Materials Inventory
Allowance for Doubtful Accounts
Accounts Receivable
Land
Direct Labor
Freight In
Year Ended December 31, 2013
Statement of Cost of Goods Manufactured
BAY CORP.
Repair and Maintenance-Factory
Utilities-Factory
Payroll Taxes Expenses-Factory
Property Taxes-Factory
995,500
5,500
990,000
42,000
533,653
575,653
35,000
540,653
449,347
110,250
210,500
320,750
128,597
32,149
96,448
Correct!
348,500
96,448
444,948
100,000
344,948
Correct!
50,000
75,000
2,250 72,750
21,000 21,000
38,000 38,000
35,000 35,000 94,000
1,000
3,500
221,250
50,000
200,000
30,000 170,000
100,000
30,000 70,000
20,000
6,000 14,000
304,000
525,250
Correct!
76,000
2,000
2,149
124
29
80,302
100,000
344,948
444,948
525,250
Correct!
Total Current Assets
Raw Materials
Work in Process
Finished Goods
Prepaid Insurance
Payroll Taxes Expense – Administrative
Officers’ Salaries Expense
Office Salaries Expenses
Current Assets
Cash
Accounts Receivable
Finished Goods Inventory, January 1
Cost of Goods Manufactured
Net Sales
250.00
2,000.00
BAY CORP.
Uncollectible Accounts Expense
Depreciation Expense – Office Furn. and Equip.
Total Administrative Expenses
Income Tax Expense
Less Finished Goods Inventory, December 31
Sales Salaries Expense
Administrative Expenses
Selling Expenses
Payroll Taxes Expense – Sales Salaries
Miscellaneous Selling Expenses
Total Selling Expenses
Delivery Expense
Advertising Expense
Operating Expenses
Gross Profit
Cost of Goods Sold
Year Ended December 31, 2013
Sales
Less Sales Returns and Allowances
BAY CORP.
Income Statement
Other Administrative Expenses
18,500.00
5,000.00
145,000.00
40,000.00
6,500.00
5,000.00
5,000.00
85,000.00
8,500.00
Net Income Before Income Taxes
Total Operating Expenses
BAY CORP.
Balance Sheet
Balance, December 31, 2013
Less: Allowance for Doubtful Accounts
Inventories
Factory Supplies
Statement of Retained Earnings
Year Ended December 31, 2013
Net Income After Income Taxes
Salaries and Wages Payable
Total Property, Plant, and Equipment
Assets
Factory Building
Less: Accumulated Depreciation-Factory Building
Total Assets
Total Stockholders’ Equity
Total Liabilities and Stockholders’ Equity
December 31, 2013
Common Stock ($1 par, 100,000 shares authorized and outstanding)
Liabilities and Stockholders’ Equity
Current Liabilities
Accounts Payable
Income Tax Payable
Social Security Tax Payable
Revenues
Total Goods Available for Sale
Cost of Goods Sold
Factory Machines
Less: Accumulated Depreciation-Factory Machines
Property, Plant, and Equipment
Land
Balance, January 1, 2013
Add: Net Income for Year
Deduct 2013 Dividends
Office Furniture and Equipment
Less: Accumulated Depreciation-Office Furniture and Equipment
Stockholders’ Equity
Retained Earnings
Medicare Tax Payable
Total Liabilities
Adjusting Entries Post
Date Description Ref Debit Credit
2013
Dec. 31 25,000
25,000
31 21,000
21,000
31 40,000
40,000
31 38,000
38,000
31 42,000
42,000
31 35,000
35,000
31 250
250
31 5,000
5,000
31 500
500
31 10,000
10,000
2,000
10,000
10,000
2,000
31 1,800
200
2,000
31 153
124
29
31 2,149
2,149
31 2,000
2,000
31 529,653
252,000
10,000
182,800
20,200
20,753
8,000
2,400
2,500
10,000
10,000
5,000
6,000
31 995,500
995,500
31 892,052
5,500
85,000
8,500
5,000
5,000
250
6,500
145,000
40,000
18,500
2,000
5,000
32,149
533,653
31 96,448
96,448
2014
Jan. 1 2,000
1,800
200
1124
29
153
1 2,149
2,149
Social Security Tax Payable
Indirect Labor
Direct Labor
Salaries and Wages Payable
Reversing Entries
Income Tax Expense
Income Tax Payable
Payroll Taxes – Factory
Medicare Tax Payable
Manufacturing Summary
Purchasing Returns and Allowances
Closing Entries
Direct Labor
Freight In
Materials Purchases
Manufacturing Summary
Insurance – Factory
Allowance for Doubtful Accounts
Depreciation – Factory Machines
Depreciation – Office Furniture and Equipment
Retained Earnings
Income Summary
Manufacturing Summary
Income Tax Expense
Delivery Expense
Payroll Taxes Expense – Sales
(Adjustment H)
Medicare Tax Payable
Social Security Tax Payable
Payroll taxes – Factory
Income Summary
Income Summary
Depreciation – Factory Building
Indirect Materials and Supplies
Repairs and Maintenance – Factory
Utilities – Factory
(Adjustment B)
(Adjustment C)
(Adjustment D)
(Adjustment E)
Factory Supplies
Indirect Materials and Supplies
Prepaid Insurance
Uncollectible Accounts Expense
Direct Labor
(Adjustment F)
Accumulated Depreciation – Office Furniture and Equipment
Accumulated Depreciation – Factory Machines
Accumulated Depreciation – Factory Building
Depreciation – Factory Building
Manufacturing Summary
Manufacturing Summary
Raw Materials Inventory
Raw Materials Inventory
Income Tax Payable
Income Tax Expense
Payroll Taxes – Factory
Indirect Labor
Manufacturing Summary
(Adjustment G)
Salaries and Wages Payable
Indirect Labor
Officers’ Salaries Expense
Miscellaneous Selling Expense
Sales
Property Taxes – Factory
Insurance – Factory
Depreciation – Factory Machines
Sales Salaries Expense
Sales Returns and Allowances
Income Summary
Finished Goods Inventory
Finished Goods Inventory
Income Summary
Other Administrative Expenses
Depreciation Expense – Office Furniture and Equipment
Payroll Taxes Expense – Administration
Advertising Expense
Uncollectible Accounts Expense
Office Salaries Expense
Manufacturing Summary
Work in Process Inventory
Work in Process Inventory
(Adjustment A)
Adjusting Entries
Account Name Debit Credit
50,000
75,000
2,000
25,000
40,000
42,000
6,000
4,000
6,000
85,000
8,500
5,000
5,000
Officers‘ Salaries Expense
Miscellaneous Selling Expense
Depreciation-Factory Machines
Payroll Taxes Expenses-Factory
Indirect Labor
Direct Labor
Freight In
Depreciation-Factory Building
Indirect Materials and Supplies
Repair and Maintenance-Factory
Utilities-Factory
Retained Earnings
Common Stock
Employee Income Tax Payable
Medicare Tax Payable
Purchases Returns and Allowances
Materials Purchases
Sales Returns and Allowances
Sales
Accum. Depreciation-Fac. Bldg.
Factory Building
Salaries and Wages Payable
Accounts Payable
Accum. Deprec.-Off. Furn. & Equip.
Office Furniture and Equipment
Accum. Depreciation-Fac. Mach.
Factory Machines
Social Security Tax Payable
Income Tax Payable
Given Data P26.02A
Year Ended December 31, 2013
Trial Balance
BAY CORP.
40,000
18,500
5,000
30,000
1,468,000 1,468,000
348,500$
100,000$
100,000
21,000$
35,000$
38,000$
3.00%
5,000$
3,500$
10,000$
10,000$
2,000$
1,800$
200$
6.20%
1.45%
25.00%
Income tax rate
Medicare Tax
Payroll tax percentages on accrued wages
Social Security Tax
Raw Materials
Additional Information:
Factory supplies on hand at end of period
Shares of $1 par value Common Stock authorized
Dividends declared and paid on Common Stock
Inventories on December 31, 2013
Expired insurance on factory building and equipment
might not be collectible
Estimated percent of Accounts Receivable that
Work in Process
and outstanding on December 31
Balance of Retained Earnings on January 1
Indirect Labor
Direct Labor
Payroll accruals at end of period:
Office furniture
Factory machines
Factory building
Depreciation Expense for the year:
Finished Goods