Raybourn Company started year 1 with $124,000 in its cash and common stock accounts. During year 1,

Question:

Raybourn Company started year 1 with $124,000 in its cash and accounts. During year 1, Raybourn paid $80,000 cash for employee compensation and $34,000 cash for materials.

Required
a. Determine the total amount of assets and the amount of expense shown on the year 1 assuming Raybourn used the labor and materials to make 228 tables. Further, assume that Raybourn sold 200 of the tables 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 Raybourn used the labor and materials to provide medical 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...