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Rundle Company began operations on January 1, year 1, by issuing common stock for $33,000 cash. During year 1, Rundle received $57,000 cash from revenue and incurred costs that required $39,000 of cash payments. Problem 1-24A (Algo) Part c Prepare a GAAP-based income statement and balance sheet for Rundle Company for year 1, for the below scenario: c. Rundle is a manufacturing company. The $39,000 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 $3,850 cash for wages of factory workers who made products during the year. (3) Paid $9,450 cash for salaries of sales and administrative employees. (4) Paid $22,300 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 completed 2,500 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 a balance sheet. (Amounts to be deducted should be indicated with a minus sign.) Assets RUNDLE COMPANY Balance Sheet as of 12/31/Year 1

Rundle Company began operations on January 1, year 1, by issuing common stock for $33,000 cash. During year 1, Rundle received $57,000 cash from revenue and incurred costs that required $39,000 of cash payments. Problem 1-24A (Algo) Part c Prepare a GAAP-based income statement and balance sheet for Rundle Company for year 1, for the below scenario: c. Rundle is a manufacturing company. The $39,000 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 $3,850 cash for wages of factory workers who made products during the year. (3) Paid $9,450 cash for salaries of sales and administrative employees. (4) Paid $22,300 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 completed 2,500 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 a balance sheet. (Amounts to be deducted should be indicated with a minus sign.) Assets RUNDLE COMPANY Balance Sheet as of 12/31/Year 1

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Rundle Company began operations on January 1, year 1, by issuing common stock for $33,000 cash. During year 1, Rundle received $57,000 cash from revenue and incurred costs that required $39,000 of cash payments. Problem 1-24A (Algo) Part c Prepare a GAAP-based income statement and balance sheet for Rundle Company for year 1, for the below scenario: c. Rundle is a manufacturing company. The $39,000 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 $3,850 cash for wages of factory workers who made products during the year. (3) Paid $9,450 cash for salaries of sales and administrative employees. (4) Paid $22,300 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 completed 2,500 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 a balance sheet. (Amounts to be deducted should be indicated with a minus sign.) Assets RUNDLE COMPANY Balance Sheet as of 12/31/Year 1
Transcribed Image Text:Rundle Company began operations on January 1, year 1, by issuing common stock for $33,000 cash. During year 1, Rundle received $57,000 cash from revenue and incurred costs that required $39,000 of cash payments. Problem 1-24A (Algo) Part c Prepare a GAAP-based income statement and balance sheet for Rundle Company for year 1, for the below scenario: c. Rundle is a manufacturing company. The $39,000 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 $3,850 cash for wages of factory workers who made products during the year. (3) Paid $9,450 cash for salaries of sales and administrative employees. (4) Paid $22,300 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 completed 2,500 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 a balance sheet. (Amounts to be deducted should be indicated with a minus sign.) Assets RUNDLE COMPANY Balance Sheet as of 12/31/Year 1
Rundle Company began operations on January 1, year 1, by issuing common stock for $33,000 cash. During year 1, Rundle received $57,000 cash from revenue and incurred costs that required $39,000 of cash payments. Problem 1-24A (Algo) Part c Prepare a GAAP-based income statement and balance sheet for Rundle Company for year 1, for the below scenario: c. Rundle is a manufacturing company. The $39,000 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 $3,850 cash for wages of factory workers who made products during the year. (3) Paid $9,450 cash for salaries of sales and administrative employees. (4) Paid $22,300 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 completed 2,500 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. RUNDLE COMPANY Income Statement for Year 1 $ 0
Transcribed Image Text:Rundle Company began operations on January 1, year 1, by issuing common stock for $33,000 cash. During year 1, Rundle received $57,000 cash from revenue and incurred costs that required $39,000 of cash payments. Problem 1-24A (Algo) Part c Prepare a GAAP-based income statement and balance sheet for Rundle Company for year 1, for the below scenario: c. Rundle is a manufacturing company. The $39,000 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 $3,850 cash for wages of factory workers who made products during the year. (3) Paid $9,450 cash for salaries of sales and administrative employees. (4) Paid $22,300 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 completed 2,500 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. RUNDLE COMPANY Income Statement for Year 1 $ 0
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