**Problem 10-26A (Algo) Part c***Prepare a GAAP-based income statement and balance sheet for Baird Company for Year 1, under the following independent scenario:***Scenario:**Baird is a manufacturing company. The $38,100 was paid to purchase the following items:1. Paid $3,900 cash to purchase materials that were used to make products during the year.2. Paid $1,300 cash for wages of factory workers who made products during the year.3. Paid $18,600 cash for salaries of sales and administrative employees.4. Paid $14,300 cash to purchase manufacturing equipment. The equipment was used solely to make products. It had a three-year life and a $2,300 salvage value. The company uses straight-line depreciation.5. During Year 1, Baird started and completed 2,000 units of product. The revenue was earned when Baird sold 1,500 units of product to its customers.**Instructions:**Complete the question by entering your answer in the tabs below.- Income Statement- Balance Sheet**Task:**Prepare a balance sheet. (Amounts to be deducted should be indicated with a minus sign.)**Balance Sheet Explanation:****BAIRD COMPANY***Balance Sheet as of 12/31/Y1***Assets**- [Provide space for entry]**Total assets** - [$0]**Equity**- [Provide space for entry]**Total equity**- [$0]Note: The balance sheet form shown is incomplete and needs the input of values to determine total assets and total equity. The values would reflect the financial scenario provided for Baird Company, including depreciation of equipment, costs of materials, wages, and salaries. **Transcription and Explanation for Educational Content**---### Background InformationBaird Company began operations on January 1, Year 1, by issuing common stock for $34,000 in cash. During Year 1, Baird received $53,100 in cash from revenue and incurred costs requiring $38,100 in cash payments.### Problem 10-26A (Algo) Part c**Task:**Prepare a GAAP-based income statement and balance sheet for Baird Company for Year 1, under the following independent scenario:### Scenario Details:Baird is a manufacturing company. The $38,100 was paid to purchase the following items:1. Paid $3,900 cash for materials used to make products during the year.2. Paid $1,300 cash for wages of factory workers who made products during the year.3. Paid $18,600 cash for salaries of sales and administrative employees.4. Paid $14,300 cash to purchase manufacturing equipment. The equipment was used solely to make products. It has a three-year life and a $2,300 salvage value. The company uses straight-line depreciation.5. During Year 1, Baird started and completed 2,000 units of product. The revenue was earned when Baird sold 1,500 units of product to its customers.### Instructions:**Complete this question by entering your answer in the tabs below.**- **Income Statement**- **Balance Sheet**### Diagram Explanation:The interface allows the user to toggle between tabs labeled "Income Statement" and "Balance Sheet" in order to complete the entries based on the scenario provided. The questions and calculations require rounding intermediate calculations to two decimal places.For example, under the "Income Statement" tab, various inputs such as revenue, costs, and expenses need to be filled in to reflect the company's financial status. The balance sheet will similarly require asset, liability, and equity entries based on the financial activities described.Additional functionality includes a navigation system at the bottom to move between questions ("Prev" and "Next") or to view a summary via a grid icon.---This description is crafted to assist learners in understanding how to record financial transactions and prepare necessary financial statements in accordance with Generally Accepted Accounting Principles (GAAP).

Working Calculation of Cost of goods sold and value of ending inventory Amount Raw material…

Answered: Baird Company began operations on…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31: RailsDivision LocomotiveDivision CorporateTotal Cost of goods sold $46,700 $29,300 Direct operating expenses 26,400 20,400 Sales 98,200 69,700 Interest expense $2,200 General overhead 19,900 Income tax 4,500 The net income for Train Corporation is a.$73,800 b.$91,900 c.$18,500
The following information is available for Tamarisk Corp. for the year ended December 31, 2022. Other revenues and gains $23,800 Other expenses and losses 4,000 Cost of goods sold 292,000 Sales discounts 4,600 Sales revenue 760,000 Operating expenses 221,000 Sales returns and allowances 10,800 Prepare a multiple-step income statement for Tamarisk Corp. The company has a tax rate of 25%.
The following information was extracted from the records of Lodh Ltd for the year ended 30 June 2021. Lodh LTD Statement of financial position (extract) As at 30 June 2021 Relevant Assets Accounts Receivable $50,000 Allowance for doubtful debts (4,000) $46,000 Prepaid rent 42,000 Plant 200,000 Accumulated depreciation – Plant (25% on cost) (50,000) 150,000 DTA beginning balance 1,000 … Relevant Liabilities Interest Payable 2,000 Provision for long service leave 10,000 Unearned revenue 20,000 DTL beginning balance 5,000 … Additional information · The tax depreciation for plant is considered at 30% of $200,000 (original cost) at 30 June 2021. · Long service leave has not been taken by any employee during the year. · There…
nces Blooming Flower Company was started in Year 1 when it acquired $60,500 cash from the issue of common stock. The following data summarize the company's first three years' operating activities. Assume that all transactions were cash transactions. Purchases of inventory Sales Cost of goods sold Selling and administrative expenses Income Statements Required: Prepare an income statement (use multistep format) and balance sheet for each fiscal year. (Hint: Record the transaction data for each accounting period in the accounting equation before preparing the statements for that year.) Complete this question by entering your answers in the tabs below. Balance Sheets Assets Cash Merchandise inventory Prepare a balance sheet for each fiscal year. (Hint: Record the transaction data for each accounting period in the accounting equation before preparing the statements for that year.) Total assets Liabilities Stockholders' equity Common stock Retained earnings Year 1 $ 22,200 26,400 12,500…
On June 30, Pronghorn Corp discontinued its operations in Mexico. During the year, the operating income was $270,000 before taxes. On September 1, Pronghorn disposed of the Mexico facility at a pretax loss of $670,000. The applicable tax rate is 30%. Show the discontinued operations section of Pronghorn’s income statement. PRONGHORN CORPPartial Income Statement select an opening section name enter an income statement item $enter a dollar amount enter an income statement item $enter a dollar amount $enter a total dollar amount
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Ans.
Peter Senen Corporation provided the following account balances as of September 30, 2020: Cash P112,000 Accumulated depreciation P 36,000 Accounts Receivable 64,000 Accounts payable 40,000 Finished Goods 48,000 Income tax payable 9,000 Work in process 36,000 Share Capital 500,000 Raw materials 52,000 Retained Earnings 207,000 Property and Equipment 480,000 The following transactions occurred during October: 1. Materials purchased on account, P150,000 2. Materials issued to production: direct materials- P90,000, Indirect materials- P10,000. 3. Payroll for the month of October 2020 consisted of the following (also paid during the month): Direct labor P62,000…
The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31: Locomotive Division Cost of goods sold Direct operating expenses Sales Interest expense General overhead. Income tax Rails Division $ 47,200 27,200 108,000 The income from operations for the Rails Division is O $21,150 Ob. $33,600 O $8,700 O d. $60,800 $30,720 20,040 78,000 Corporate Total $2,040 18,160 4,700
A colleague of yours has been reviewing the second-quarter income statements for a number of companies and is questioning a number of the expense items included in the statements. For each of the following independent questions, provide a written response to your colleague’s questions.1. A footnote accompanying Company A’s second-quarter income statement states that $360,000 was expended on research and development during the quarter on activities that should benefit operations over the next 24 months. Why does the second quarter reflect an expense of $120,000 rather than $15,000?2. Company B reported pretax income in both the first and second quarters, and the statutory tax rate during those periods and for the balance of the year is 30%. Assume that there were no net operating losses in prior years for tax purposes. However, both of the quarters reported an effective tax rate of less than 30%. What could possibly explain this?3. Assume the same facts as in part (2) except that the…

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