Question

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 make products during the year.

(2) Paid $2,340 cash for wages of factory workers who made products during the year.

(3) Paid $17,960 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 straightline depreciation.

(5) During 2014, Lang started and completed 2,400 units of product. The revenue was earned when Lang sold 2,000 units of product to its customers.

*** Need help with income statement and balance sheet**** Please provide step by step

Answer 1