Baird Company began operations on January 1, Year 1, by issuing common stock for $34,000 cash. During Year 1, Baird received $53,100 cash from revenue and incurred costs that required $38,100 of cash payments. 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: c. 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.
Baird Company began operations on January 1, Year 1, by issuing common stock for $34,000 cash. During Year 1, Baird received $53,100 cash from revenue and incurred costs that required $38,100 of cash payments. 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: c. 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:**Preparation of Financial Statements for Baird Company**
**Objective:**
Prepare a GAAP-based income statement and balance sheet for Baird Company for Year 1, using the provided scenario.
**Scenario Details:**
Baird is a manufacturing company. The total amount of $38,100 was allocated as follows:
1. Paid $3,900 in cash for materials utilized in product manufacturing during the year.
2. Paid $1,300 in cash for factory workers' wages involved in production during the year.
3. Paid $18,600 in cash for salaries of sales and administrative staff.
4. Paid $14,300 in cash for manufacturing equipment. This equipment was solely for production and features:
- A three-year life span
- A $2,300 salvage value
- Straight-line depreciation is employed.
5. Throughout Year 1, Baird manufactured 2,000 units, selling 1,500 units and generating revenue through these sales.
**Instructions:**
Complete the following sections by entering your answers in the designated tabs.
**Balance Sheet Preparation:**
- Create a balance sheet as of 12/31/Y1 for Baird Company.
- Amounts to be deducted should be denoted with a minus sign.
**Balance Sheet Structure:**
- **Assets:**
- List and calculate total assets.
- **Equity:**
- Include calculations for equity.
**Graphical Elements:**
The determination of assets and equity will be facilitated through a structured table, which is not completely filled out in this instance. Tabs are provided for navigation between the income statement and the balance sheet.
**Navigation:**
Users can switch between "Income Statement" and "Balance Sheet" tabs and utilize "Prev" and "Next" buttons for further operations.
**Note:**
The table is interactive, requiring details to be directly inputted.
- [< Prev](#) Page 5 of 6 [Next >](#)
Notes:
- The image displays a section for entering figures in Baird Company's income statement but does not provide specific financial data for transcription.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6f458425-f198-4d57-aa8a-7a8441bdceb0%2Fbf484b30-2e80-4f58-a194-eec0146dbc21%2Fuidu50l_processed.jpeg&w=3840&q=75)
Transcribed Image Text:# Problem 10-26A (Algo) Service versus Manufacturing Companies LO 10-4
*The following information applies to the questions displayed below.*
Baird Company began operations on January 1, Year 1, by issuing common stock for $34,000 cash. During Year 1, Baird received $53,100 cash from revenue and incurred costs that required $38,100 of cash payments.
## 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:
**c. 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.
### Income Statement and Balance Sheet
Complete this question by entering your answer in the tabs below.
#### Income Statement
*(Prepare an Income Statement. Round your intermediate calculations to 2 decimal places.)*
**BAIRD COMPANY**
*Income Statement for Year 1*
| Description | Amount |
|-------------|--------|
| | $0 |
| | $0 |
| | $0 |
| | $0 |
- [Balance Sheet ->](#)
- [< Prev](#) Page 5 of 6 [Next >](#)
Notes:
- The image displays a section for entering figures in Baird Company's income statement but does not provide specific financial data for transcription.
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