Question

Check my work 1 Rundle 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. 00:56.29 Skipped 1. Acquired $57,000 cash by issuing common stock. 2. Paid $7,300 for the materials used to make its products, all of which were started and completed during the year. 3. Paid salaries of $3,500 to selling and administrative employees. 4. Paid wages of $6,600 to production workers. 5. Paid $4,000 for furniture used in selling and administrative offices. The furniture was acquired on January 1. It had a $1,400 estimated salvage value and a two-year useful life. 6. Paid $11,600 for manufacturing equipment. The equipment was acquired on January 1. It had a $1100 estimated salvage value and a three-year useful life. 7. Sold Inventory to customers for $25,300 that had cost $13,600 to make. eBook Print References Required How these events would affect the balance sheet and income statement by recording them in a horizontal financial statements model as indicated here. The first event is recorded as an example. (Enter decreases to account balances with a minus sign.) Income Statement Event No. Balance Sheet Assets Manut Office Inventory Equip Furn. + . Ret. Ear. Rev. Exp Netine Equity Common stock 57,000 - . Cash - 1 + 57.000 2 - + . + Prex 1 of 20 Next > ME GE HUM

Answer 1

Balance Sheet Income Statement Event No. Assets Inventory Manuf. + Equip. Cash + + Office Furn. Equity Common stock 57,000 Ret. Ear. Rev. Exp. Net Inc. 1 57,000 + + + = 2 (7,300) + 7,300 + + E + 3 + . (3,500) (6,600) (3,500) 3,500 (3,500) 4 6,600 + + 5a (4,000) 4,000 + (1,300) (1,300) 1,300 (1,300) (4000 - 1400)/2 years = 1300 ба (11,600) + 11,600 6b + (3,500) + (3,500) 3,500 (11,600 - 1100)/3 year = 3500 7a 25,300 (3,500) 25,300 + + + 25,300 25,300 7b + (13,600) + 13,600 Total (13,600) 3400 49,300 (13,600) 3400 300 8,100 + 2700 57,000 + 25,300 21,900