Marisol Company Has Just Completed Operations for the Year Ended

question 166

Essay

Marisol Company has just completed operations for the year ended December 31,2016.This is the second year of operations for the company.The following data have been assembled for the business.
$$\begin{array} { | l | r | l| } \hline \text { Accounts Payable } & \$ 12,200& \text { Office Expense } & \$ 6,500 \\\hline \text { Accounts Receivable } & 14,500& \text { Rent Expense } & 9,600 \\\hline \text { Cash } & 8,200& \text { Retained Earnings, Jan. 1,2016 } & 8,300 \\\hline \text { Common Stock } & 9,000& \text { Salaries Expense } & 36,000 \\\hline \text { Dividends } & 13,500 &\text { Service Revenue } & 84,000 \\\hline \text { Equipment } & 15,000 &\text { Utilities Expense } & 6,200 \\\hline \text { Insurance Expense } & 4,000 & \\\hline\end{array}$$ Prepare the statement of retained earnings.Use a proper heading.

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Definitions:

Work in Process Inventory

Items that are in the production process but have not yet been completed or turned into finished goods.

Actual Overhead

The real, incurred costs of running a business, excluding direct labor and direct materials, over a given period.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products, calculated before the period begins based on an estimate of total costs and activity levels.

Manufacturing Overhead

All indirect costs associated with manufacturing, including indirect labor, indirect materials, and other overhead costs that cannot be directly traced to specific items produced.