Lang Company began operations on January 1, 2014, by issuing common stock for $31,000 cash. During 2014, Lang received $36,600 cash from revenue and incurred costs that required $49,600 of cash payments.

Required:

Prepare an income statement and a balance sheet for Lang Company for 2014, under each of the following independent scenarios.

a.

Lang is a promoter of rock concerts. The $49,600 was paid to provide a rock concert that produced the revenue. (Any losses and amounts to be deducted should be indicated with a minus sign.)

b.

Lang is in the car rental business. The $49,600 was paid to purchase automobiles. The automobiles were purchased on January 1, 2014, and have four-year useful lives, with no expected salvage value. Lang uses straight-line depreciation. The revenue was generated by leasing the automobiles. (Any losses and amounts to be deducted should be indicated with a minus sign.)

c. Lang is a manufacturing company. The $49,600 was paid to purchase the following items:

(1) Paid $3,100 cash to purchase materials that were used to make products during the year.

(2) Paid $2,360 cash for wages of factory workers who made products during the year.

(3) Paid $25,140 cash for salaries of sales and administrative employees.

(4)

Paid $19,000 cash to purchase manufacturing equipment. The equipment was purchased January 1, 2014, was used solely to make products. It had a four-year life and a $2,200 salvage value. The company uses straightline depreciation.

(5)

During 2014, Lang started and completed 2,300 units of product. The revenue was earned when Lang sold 2,000 units of product to its customers.