(Solution) - Drafts of the condensed income statement and balance sheet of -(2025 Original AI-Free Solution)

Paper Details

Drafts of the condensed income statement and balance sheet of Allofe Co. for the current year are shown below. Shortly after preparing these draft financial statements, Allofe discovered that an error 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 theerror.)