Walton Company started year 1 with $330,000 in its cash and common stock accounts. During year 1, Walton paid $247,500 cash for employee compensation and $75,900 cash for materials. Required o. Determine the total amount of assets and the amount of expense shown on the year 1 financial statements assuming Walton used the labor and materials to make 1,500 chairs. Further, assume that Walton sold 1,200 of the chairs it made. State the name of the expense account(s) shown on the income statement. b. Determine the total amount of assets and the amount of expense shown on the year 1 financial statements assuming Walton used the labor and materials to provide dental cleaning services to 500 patients. State the name of the expense account(s) shown on the income statement.
Walton Company started year 1 with $330,000 in its cash and common stock accounts. During year 1, Walton paid $247,500 cash for employee compensation and $75,900 cash for materials. Required o. Determine the total amount of assets and the amount of expense shown on the year 1 financial statements assuming Walton used the labor and materials to make 1,500 chairs. Further, assume that Walton sold 1,200 of the chairs it made. State the name of the expense account(s) shown on the income statement. b. Determine the total amount of assets and the amount of expense shown on the year 1 financial statements assuming Walton used the labor and materials to provide dental cleaning services to 500 patients. State the name of the expense account(s) shown on the income statement.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Walton Company started year 1 with $330,000 in its cash and common stock accounts. During year 1, Walton paid $247,500 cash for
employee compensation and $75,900 cash for materials.
Required
a. Determine the total amount of assets and the amount of expense shown on the year 1 financial statements assuming Walton used
the labor and materials to make 1,500 chairs. Further, assume that Walton sold 1,200 of the chairs it made. State the name of the
expense account(s) shown on the income statement.
b. Determine the total amount of assets and the amount of expense shown on the year 1 financial statements assuming Walton used
the labor and materials to provide dental cleaning services to 500 patients. State the name of the expense account(s) shown on the
income statement.
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