Question

Rooney Manufacturing Company experienced the following accounting events during its first year of operation. With the exception of the adjusting entries for depreciation, assume that all transactions are cash transactions and that financial statement data are prepared in accordance with GAAP.

1. Acquired $53,000 cash by issuing common stock.
2. Paid $8,000 for the materials used to make its products, all of which were started and completed during the year.
3. Paid salaries of $3,400 to selling and administrative employees.
4. Paid wages of $6,300 to production workers.
5. Paid $5,100 for furniture used in selling and administrative offices. The furniture was acquired on January 1. It had a $1,500 estimated salvage value and a two-year useful life.
6. Paid $12,300 for manufacturing equipment. The equipment was acquired on January 1. It had a $1,800 estimated salvage value and a three-year useful life.
7. Sold inventory to customers for $26,200 that had cost $13,900 to make.

Financial Statements Model Assets Equity Income Statement Office Furn. Ret. Ear Event Manuf Equip Cash +Inventory+ Common Rev.Exp Net Inc. stock 53,000 + 53,000+ 2(8,0008,000+ 3 (3,400)+ +(3,400) 34001-г (3,400) 4 (6300)| + 5a (5,100)+ 5b 6a (12,300)+ 6b 6.300| + 5,100 12,300 26,200 -13,900(13,900) 8,900 +26,20026,200 - 7b +(13,900)+ +(13,900) Tota44,100+ 400 12,300+ 5,100 53,000+ 8,90026,200- 17,300-

MISSING ONLY 5B AND 6B

Answer 1

Missing details are as calculated below:

	Assets				Equity			Income statement
Event Number	Cash +	Inventory +	Manufacturing Equipment +	Office Furniture	Common stock	+	Retained earnings	Revenue	-	Expense	Net Income
1	53,000				53,000
2	-8,000	8,000
3	-3,400						-3,400			3,400	-3,400
4	-6,300	6,300
5a	-5,100			5,100
5b				-1,800			-1,800			1,800	-1,800
6a	-12,300		12,300
6b			-3,500				-3,500			3,500	-3,500
7a	26,200						26,200	26,200			26,200
7b		-13,900					-13,900			13,900	-13,900
	44,100	400	8,800	3,300	53,000		3,600	26,200		22,600	3,600
5b.	(5,100-1,500)/2
	1800
6b.	(12,300-1,800)/3
	3500