Question
In: Accounting
Zachary Company began operations on January 1, 2018, by issuing common stock for $37,000 cash. During...
Zachary Company began operations on January 1, 2018, by issuing common stock for $37,000 cash. During 2018, Zachary received $56,200 cash from revenue and incurred costs that required $37,200 of cash payments.
Prepare a GAAP-based income statement and balance sheet for
Zachary Company for 2018, under each of the following independent
scenarios:
Zachary is a manufacturing company. The $37,200 was paid to purchase the following items:
(1) Paid $3,200 cash to purchase materials that were used to make products during the year.
(2) Paid $3,860 cash for wages of factory workers who made products during the year.
(3) Paid $8,940 cash for salaries of sales and administrative employees.
(4) Paid $21,200 cash to purchase manufacturing equipment. The equipment was used solely to make products. It had a four-year life and a $2,400 salvage value. The company uses straightline depreciation.
(5) During 2014, Lang started and completed 2,400 units of product. The revenue was earned when Lang sold 1,900 units of product to its customers.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
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Baird Company began operations on January 1, 2018, by issuing
common stock for $32,000 cash. During 2018, Baird received $56,400
cash from revenue and incurred costs that required $38,400 of cash
payments.
Prepare a GAAP-based income statement and balance sheet for
Baird Company for 2018, under each of the following independent
scenarios:
Baird is a manufacturing company. The $38,400 was paid to
purchase the following items:
(1) Paid $3,400 cash to purchase materials that were used to
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Required
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XYZ Company began operations in May, 2018 by selling common stock to
owners in exchange for $90,000 cash. During 2018, ABC Company entered
into the following transactions:
1. On May 23, ABC Company purchased inventory for $50,000 cash.
2. On June 1, ABC Company purchased a three-year insurance policy
for $23,400 cash.
3. On July 1, ABC Company received $49,500 cash from a customer
for services to be performed over the next 18 months.
4. On August 1, ABC Company...
XYZ Company began operations in May, 2018 by selling common stock to owners in exchange for...
XYZ Company began operations in May, 2018 by selling common stock to
owners in exchange for $90,000 cash. During 2018, ABC Company entered
into the following transactions:
1. On May 23, ABC Company purchased inventory for $50,000 cash.
2. On June 1, ABC Company purchased a three-year insurance policy
for $23,400 cash.
3. On July 1, ABC Company received $49,500 cash from a customer
for services to be performed over the next 18 months.
4. On August 1, ABC Company...
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Day 2 - Buys one unit of inventory for $15.
Day 3 - Buys one unit of inventory for $20.
Day 4 - Sells one unit of inventory for $100.
Day 5 - Sells two units of inventory for...
A company is formed by issuing common stock for $1,000 in cash and then transacts as...
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and then transacts as follows over its first five days of business,
with all purchases and sales on credit:
Day 1 - Buys one unit of inventory for $10.
Day 2 - Buys one unit of inventory for $15.
Day 3 - Buys one unit of inventory for $20.
Day 4 - Sells one unit of inventory for $100.
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Staub Company began operations when it acquired $135,000 cash
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The cash acquired was immediately used to purchase equipment for
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that had a $27,000 salvage value and an expected useful life of
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used to produce the following revenue stream (assume all revenue
transactions are for cash). At the
beginning of the fifth year, the equipment was sold for $13,500
cash.
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