DRraftys of the condensed income statement and balance sheet of Allofe Co.for the current year are shown below.Shortly after preparing these draft fincial statements,Allofe discovered that an erroe had been

DRraftys of the condensed income statement and balance sheet of Allofe Co.for the current year are shown below.Shortly after preparing these draft fincial statements,Allofe discovered that an erroe had been made in the year-end adjustment process.Overhead of $2,500 had not been applied to the ending work in process. REQUIRED 1.Identify all adjusting and closing entries that would be affected by this error and prepare the missing portions of the entries. 2.Prepare a revised condensed income statement for Allofe.(In solving this problem,assume that corporate income tax is not affected by the error) Transcribed Image Text: Allofe Co.
Condensed Income Statement
For Year Ended December 31, 20-
$501,570
360,312
$141,258
Net sales
Cost of goods sold
Gross profit
Operating expenses
Net income
87,088
$ 54,170
Allofe Co.
Condensed Balance Sheet
December 31, 20–
Assets
$ 93,014
177,441
$270,455
Current assets
Property, plant, and equipment (net)
Total assets
Liabilities
Current liabilities
$ 28,671
Long-term liabilities
Total liabilities
60,000
$ 88,671
Stockholders’ Equity
Paid-in capital
Retained earnings
Total stockholders’ equity
Total liabilities and stockholders’ equity
$ 57,000
124,784
$181,784
$270,455

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