Question:ABC Company started year 1 with $270,000 in its cashand common stock accounts. During year 1, ABC paid$202,500 cash for employee compensation and $62,100cash for materials.a. Determine the total amount of assets and the amountof expense shown on the year 1 financial statementsassuming ABC used the labor and materials to make1,500 chairs. Further, assume that ABC sold 1,200 of thechairs it made. State the name(s) of the expenseaccount(s) shown on the income statement.Total assetsTotal expensesName of the expense Cost of goods sold

Explanation of Cost of Goods Sold:Cost of Goods Sold (COGS) represents the direct costs incurred in…

Answered: Question: ABC Company started year 1…

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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work i Propiem IU-ZDA (Aigo) Service versus manufacturing companies LU 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…
The Juarez Corporation incurred the following transactions during its first year of operations. (Assume all transactions involve cash). 1) Acquired $1,800 of capital from the owners. 2) Purchased $380 of direct raw materials. 3) Used $280 of these direct raw materials in the production process. 4) Paid production workers $480 cash. 5) Paid $280 for manufacturing overhead (applied and actual overhead are the same). 6) Started and completed 260 units of inventory. 7) Sold 130 units at a price of $6 each. 8) Paid $120 for selling and administrative expenses. The amount of cost of goods manufactured would be:
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Schrade Company bought a machine for $98,000 cash. The estimated useful life was four years and the estimated residual value was $6,040. Assume that the estimated useful life in productive units is 121,000. Units actually produced were 44,000 in Year 1 and 46,000 in Year 2. Required: 1. Determine the appropriate amounts to complete the following schedule. 2-a. Which method would result in the lowest Earnings per Share for Year 1? 2-b. Which method would result in the lowest Earnings per Share for Year 2? 3. If used for tax reporting, which method would result in the highest amount of cash outflows in Year 1? Required 1 Required 2a Required 2b Required 3 Determine the appropriate amounts to complete the following schedule. Note: Do not round your intermediate calculations. Method of Depreciation Straight-line Units-of-production Double-declining-balance Depreciation Expense for Year 1 Year 2 Net Book Value at the End of Year 1 Year 2
Required information [The following information applies to the questions displayed below.] Munoz Company began operations on January 1, year 1, by issuing common stock for $35,000 cash. During year 1, Munoz received $63,600 cash from revenue and incurred costs that required $49,600 of cash payments. Prepare a GAAP-based income statement and balance sheet for Munoz Company for year 1, for the below scenario: c. Munoz is a manufacturing company. The $49,600 was paid to purchase the following items: (1) Paid $3,700 cash to purchase materials that were used to make products during the year. (2) Paid $1,880 cash for wages of factory workers who made products during the year. (3) Paid $23,720 cash for salaries of sales and administrative employees. (4) Paid $20,300 cash to purchase manufacturing equipment. The equipment was used solely to make products. It had a four-year life and a $2,300 salvage value. The company uses straight-line depreciation. (5) During year 1, Lang started and…
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Powerpuff Girl Laundry has current assets amounting to $300,000. Noncurrent assets for the year totaled $89,000. What percentage of the laundry's total assets is current assets?
Subject: accounting
What is the value to be filled in Retained earnings. Prepare income statement , Balance sheet.
Siegel Company spent $14,000 on direct supplies and $19,000 on compensation for manufacturing personnel during its first year of operation. Lease and utility costs for the manufacturing plants totaled $17,000, with general, marketing, and administrative expenditures totaling $8,000. The business manufactured 5,000 devices and sold 3,000 units for $15.00 each. What was Silverman's net income in his first year of business? Answer options group 1. $7,000 2. $12,000 3. $28,000 4. $37,000

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