Problem 1-24A (Algo) Service versus manufacturing companies LO 1-4 [The following information applies to the questions displayed below.] Franklin Company began operations on January 1, year 1, by issuing common stock for $37,000 cash. During year 1, Franklin received $61,600 cash from revenue and incurred costs that required $49,600 of cash payments. Problem 1-24A (Algo) Part c Prepare a GAAP-based income statement and balance sheet for Franklin Company for year 1, for the below scenario: c. Franklin is a manufacturing company. The $49,600 was paid to purchase the following items: (1) Paid $3,400 cash to purchase materials that were used to make products during the year. (2) Paid $2,580 cash for wages of factory workers who made products during the year. (3) Paid $29,020 cash for salaries of sales and administrative employees. (4) Paid $14,600 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, Lang started and completed 2,400 units of product. The revenue was earned when Lang sold 2,000 units of product to its customers. Complete this question by entering your answer in the tabs below. Income Statement Balance Sheet Prepare an Income Statement. FRANKLIN COMPANY Income Statement for Year 1
Problem 1-24A (Algo) Service versus manufacturing companies LO 1-4 [The following information applies to the questions displayed below.] Franklin Company began operations on January 1, year 1, by issuing common stock for $37,000 cash. During year 1, Franklin received $61,600 cash from revenue and incurred costs that required $49,600 of cash payments. Problem 1-24A (Algo) Part c Prepare a GAAP-based income statement and balance sheet for Franklin Company for year 1, for the below scenario: c. Franklin is a manufacturing company. The $49,600 was paid to purchase the following items: (1) Paid $3,400 cash to purchase materials that were used to make products during the year. (2) Paid $2,580 cash for wages of factory workers who made products during the year. (3) Paid $29,020 cash for salaries of sales and administrative employees. (4) Paid $14,600 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, Lang started and completed 2,400 units of product. The revenue was earned when Lang sold 2,000 units of product to its customers. Complete this question by entering your answer in the tabs below. Income Statement Balance Sheet Prepare an Income Statement. FRANKLIN COMPANY Income Statement for Year 1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please don't give image format
Transcribed Image Text:Income
Statement
Prepare a balance sheet. (Amounts to be deducted should be
Assets
Balance Sheet
Total assets
Equity
FRANKLIN COMPANY
Balance Sheet as of 12/31/Year 1
![Required information
Problem 1-24A (Algo) Service versus manufacturing companies LO 1-4
[The following information applies to the questions displayed below.]
Franklin Company began operations on January 1, year 1, by issuing common stock for $37,000 cash. During year 1,
Franklin received $61,600 cash from revenue and incurred costs that required $49,600 of cash payments.
Problem 1-24A (Algo) Part c
Prepare a GAAP-based income statement and balance sheet for Franklin Company for year 1, for the below scenario:
c. Franklin is a manufacturing company. The $49,600 was paid to purchase the following items:
(1) Paid $3,400 cash to purchase materials that were used to make products during the year.
(2) Paid $2,580 cash for wages of factory workers who made products during the year.
(3) Paid $29,020 cash for salaries of sales and administrative employees.
(4) Paid $14,600 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, Lang started and completed 2,400 units of product. The revenue was earned when Lang sold 2,000 units of product
to its customers.
Complete this question by entering your answer in the tabs below.
Income
Statement
Balance Sheet
Prepare an Income Statement.
FRANKLIN COMPANY
Income Statement for Year 1
< Income Statement
Balance Sheet >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F22da4f3b-2612-43b0-ae2f-5b16aef8bb60%2Fe265eafd-e8c8-4775-9150-2fe712c2c29c%2Fg7q989s_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Problem 1-24A (Algo) Service versus manufacturing companies LO 1-4
[The following information applies to the questions displayed below.]
Franklin Company began operations on January 1, year 1, by issuing common stock for $37,000 cash. During year 1,
Franklin received $61,600 cash from revenue and incurred costs that required $49,600 of cash payments.
Problem 1-24A (Algo) Part c
Prepare a GAAP-based income statement and balance sheet for Franklin Company for year 1, for the below scenario:
c. Franklin is a manufacturing company. The $49,600 was paid to purchase the following items:
(1) Paid $3,400 cash to purchase materials that were used to make products during the year.
(2) Paid $2,580 cash for wages of factory workers who made products during the year.
(3) Paid $29,020 cash for salaries of sales and administrative employees.
(4) Paid $14,600 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, Lang started and completed 2,400 units of product. The revenue was earned when Lang sold 2,000 units of product
to its customers.
Complete this question by entering your answer in the tabs below.
Income
Statement
Balance Sheet
Prepare an Income Statement.
FRANKLIN COMPANY
Income Statement for Year 1
< Income Statement
Balance Sheet >
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