The following transactions pertain to Year 1, the first-year operations of Rooney Company. All inventory was started and completed during Year 1. Assume that all transactions are cash transactions. Acquired $4,600 cash by issuing common stock. Paid $680 for materials used to produce inventory. Paid $1,800 to production workers. Paid $848 rental fee for production equipment. Paid $100 to administrative employees. Paid $117 rental fee for administrative office equipment. Produced 320 units of inventory of which 220 units were sold at a price of $13 each. Required Prepare an income statement and a balance sheet in accordance with GAAP.
The following transactions pertain to Year 1, the first-year operations of Rooney Company. All inventory was started and completed during Year 1. Assume that all transactions are cash transactions. Acquired $4,600 cash by issuing common stock. Paid $680 for materials used to produce inventory. Paid $1,800 to production workers. Paid $848 rental fee for production equipment. Paid $100 to administrative employees. Paid $117 rental fee for administrative office equipment. Produced 320 units of inventory of which 220 units were sold at a price of $13 each. Required Prepare an income statement and a balance sheet in accordance with GAAP.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following transactions pertain to Year 1, the first-year operations of Rooney Company. All inventory was started and completed during Year 1. Assume that all transactions are cash transactions.
-
Acquired $4,600 cash by issuing common stock.
-
Paid $680 for materials used to produce inventory.
-
Paid $1,800 to production workers.
-
Paid $848 rental fee for production equipment.
-
Paid $100 to administrative employees.
-
Paid $117 rental fee for administrative office equipment.
-
Produced 320 units of inventory of which 220 units were sold at a price of $13 each.
Required
Prepare an income statement and a
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