Give correct answer the question Jing Company was started on January 1, Year 1 when itissued common stock for $32,000 cash. Also, on January 1,Year 1 the company purchased office equipment that cost$15,600 cash. The equipment was delivered under terms ofFOB shipping point, and the transportation cost was$1,700. The equipment had a five-year useful life and a$6,100 expected salvage value.Assume that Jing Company earned $20,600 in cashrevenue and incurred $13,000 in cash expenses in Year 3.Using straight-line depreciation and assuming that theoffice equipment was sold on December 31, Year 3 for$10,100, the amount of net income or (loss) appearing onthe December 31, Year 3 income statement would be

Step 1: Define Net LossNet loss is when the sale generated in the organization is insufficient to…

Answered: Jing Company was started on January 1,…

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

ChapterMB: Model-building Problems

Section: Chapter Questions

Problem 14M

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Jing Company was started on January 1, Year 1 when it issued common stock for $31,000 cash. Also, on January 1, Year 1 the company purchased office equipment that cost $15,500 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $1,600. The equipment had a five-year useful life and a $6,000 expected salvage value. Assume that Jing Company earned $19,800 cash revenue and incurred $12,500 in cash expenses in Year 3. Using straight-line depreciation and assuming that the office equipment was sold on December 31, Year 3 for $9,800, what is the amount of net income or (loss) appearing on the December 31, Year 3 income statement?
Franklin Manufacturing Company was started on January 1, year 1, when it acquired $82,000 cash by issuing common stock. Franklin immediately purchased office furniture and manufacturing equipment costing $9,100 and $27,300, respectively. The office furniture had an eight-year useful life and a zero salvage value. The manufacturing equipment had a $3,600 salvage value and an expected useful life of three years. The company paid $11,500 for salaries of administrative personnel and $15,100 for wages to production personnel. Finally, the company paid $13,520 for raw materials that were used to make inventory. All inventory was started and completed during the year. Franklin completed production on 4,400 units of product and sold 3,450 units at a price of $15 each in year 1. (Assume that all transactions are cash transactions and that product costs are computed in accordance with GAAP.) Required a. Determine the total product cost and the average cost per unit of the inventory produced in…
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