Morland Company started year 1 with $75,000 in its cash and common stock accounts. During year 1,

Question:

Morland Company started year 1 with $75,000 in its cash and accounts. During year 1, Morland paid $50,000 cash for employee compensation and $17,500 cash for materials.
Required
a. Determine the total amount of assets and the amount of expense shown on the year 1 assuming Morland used the labor and materials to make 1,500 chairs. Further, assume that Morland sold 1,200 of the chairs it made. State the name(s) 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 assuming Morland used the labor and materials to provide dental cleaning services to 500 patients. State the name(s) of the expense account(s) shown on the income statement.
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...