Required information. Problem 10-26A (Algo) Service versus manufacturing companies LO 10-4 [The following information applies to the questions displayed below] Rundle Company began operations on January 1, Year 1, by issuing common stock for $34,000 cash. During Year 1, Rundle received $49,100 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 Rundle Company for Year 1 under the following scenario c. Rundle is a manufacturing company. The $38.100 was paid to purchase the following items: (1) Paid $3,100 cash to purchase materials that were used to make products during the year. (2) Paid $2,000 cash for wages of factory workers who made products during the year (3) Paid $18,300 cash for salaries of sales and administrative employees. (4) Paid $14,700 cash to purchase manufacturing equipment. The equipment was used solely to make products. It had a three-year life and a $2.400 salvage value. The company uses straight line depreciation. (5) During Year 1. Rundle started and completed 2,300 units of product. The revenue was earned when Rundle sold 1,900 units of product to its custome

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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hh.2

Complete this question by entering your answer in the tabs below.
Income
Statement
Balance Sheet
Assets
Cash
Prepare a balance sheet.
Note: Amounts to be deducted should be indicated with a minus sign. Do not round your intermediate calculations.
RUNDLE COMPANY
Balance Sheet as of 12/31/Year 1
Accumulated depreciation
Finished goods inventory
Manufacturing equipment
Total assets
Stockholders' equity
Common stock
Retained earnings
Total stockholders' equity
$
S
$
$
45,000
(4,100)
394x
14,700
0
55,994
Answer is not complete.
34,000
0
34,000
Transcribed Image Text:Complete this question by entering your answer in the tabs below. Income Statement Balance Sheet Assets Cash Prepare a balance sheet. Note: Amounts to be deducted should be indicated with a minus sign. Do not round your intermediate calculations. RUNDLE COMPANY Balance Sheet as of 12/31/Year 1 Accumulated depreciation Finished goods inventory Manufacturing equipment Total assets Stockholders' equity Common stock Retained earnings Total stockholders' equity $ S $ $ 45,000 (4,100) 394x 14,700 0 55,994 Answer is not complete. 34,000 0 34,000
!
Required information
Problem 10-26A (Algo) Service versus manufacturing companies LO 10-4
[The following information applies to the questions displayed below)
Rundle Company began operations on January 1, Year 1, by issuing common stock for $34,000 cash. During Year 1, Rundle
received $49,100 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 Rundle Company for Year 1 under the following scenario
c. Rundle is a manufacturing company. The $38.100 was paid to purchase the following items:
(1) Paid $3,100 cash to purchase materials that were used to make products during the year.
(2) Paid $2,000 cash for wages of factory workers who made products during the year
(3) Paid $18,300 cash for salaries of sales and administrative employees.
(4) Paid $14.700 cash to purchase manufacturing equipment. The equipment was used solely to make products. It had a three-year life
and a $2.400 salvage value. The company uses straight line depreciation.
(5) During Year 1. Rundle started and completed 2,300 units of product. The revenue was earned when Rundle sold 1,900 units of
product to its customers.
Transcribed Image Text:! Required information Problem 10-26A (Algo) Service versus manufacturing companies LO 10-4 [The following information applies to the questions displayed below) Rundle Company began operations on January 1, Year 1, by issuing common stock for $34,000 cash. During Year 1, Rundle received $49,100 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 Rundle Company for Year 1 under the following scenario c. Rundle is a manufacturing company. The $38.100 was paid to purchase the following items: (1) Paid $3,100 cash to purchase materials that were used to make products during the year. (2) Paid $2,000 cash for wages of factory workers who made products during the year (3) Paid $18,300 cash for salaries of sales and administrative employees. (4) Paid $14.700 cash to purchase manufacturing equipment. The equipment was used solely to make products. It had a three-year life and a $2.400 salvage value. The company uses straight line depreciation. (5) During Year 1. Rundle started and completed 2,300 units of product. The revenue was earned when Rundle sold 1,900 units of product to its customers.
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