Exercise PR1-4A Financial & Managerial Accounting Edition 15

Robstown Corporation Statement of Cost of Goods Manufactured For the Year Ended December 31, 20Y8 Work in process inventory, January 1, 20Y8 Direct materials: Cost of direct materials used in production Direct labor Factory overhead: Total factory overhead Total manufacturing costs incurred during the year Total manufacturing costs Cost of goods manufactured Robstown Corporation Income Statement For the Year Ended December 31, 20Y8 Sales Cost of goods sold: Cost of finished goods available for sale Cost of goods sold Gross profit Operating expenses: Administrative expenses: Selling expenses: Total operating expenses Net incomePR 1-4A Transactions; financial statements Obj 4, 5 2. Net income: On August 1, 2019, Brooke Kline established Western Realty. Brooke completed the following $39,750 transactions during the month of August: a, Opened a business bank account with a deposit of $35,000 in exchange for common stock. b. Purchased supplies on account, $2,750. c. Paid creditor on account, $1,800. d. Earned sales commissions, receiving cash, $52,800. e. Paid rent on office and equipment for the month, $4,500. f. Paid dividends, $3,000. g. Paid automobile expenses for month, $1, 100, and miscellaneous expenses, $1,200. h. Paid office salaries, $5,250. .Determined that the cost of supplies on hand was $1,750; therefore, the cost of supplies used was $1,000. Instructions 1. Indicate the effect of each transaction and the balances after each transaction, using the follow- ing tabular headings: Assets = Liabilities + Stockholders Equity Accounts Common Sales Salaries Rent Auto Supplies Misc. Cash + Supplies - Payable + Stock - Dividends + Commissions - Expense - Expense - Expense - Expense - Expense 2. Prepare an income statement for August, a statement of stockholders' equity for August, and a balance sheet as of August 31