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Model constructing an income statement and balance sheet for a furniture company based on the following transaction details. Please clearly show which transactions fall under
Model constructing an income statement and balance sheet for a furniture company based on the following transaction details. Please clearly show which transactions fall under the following parts of the statement:
Sales
Cost of Sales
SG&A Expenses
Interest Income
Income Expense
Loss on Sale of Non-Current Asset
Transactions
- Buy wood to build bookshelves- $500
- A recently hired team member builds the bookshelves and should be paid - $25
- Paid electricity bill for shop where bookshelves are made - $100
- Paid team member who built the bookshelves - $25
- Sold moving truck - $2500 (cash) (depreciation charge to date is $500; truck had an accumulated depreciation of $1000 at the time of sale)
- Sold 2 bookshelves for $200 each (the total cost to make the bookshelves was $75 each)
- Completed a subscription service from prior year - $4000
- A count of manufacturing inventory shows $200 of raw materials on hand, $100 of work in process and completed making $300 worth of bookshelves
- File cabinets depreciated - $75
- Paid interest on a bank loan - $1000
- Recorded the portion of the prepaid workshop insurance from the previous year - $50
- Collected interest income - $20
Opening Balances
- Cash - $2000
- Inventory stock - $1000
- Materials - $0
- Work in Process - $0
- Finished Goods - $0
- Total Inventory -
- Accounts Receivable - $5000
- PP&E - $4000
- Prepayments - $1000
- Accrued Income - $10
- Accounts Payable - $2000
- Tax Payable - $0
- Dividend Payable - $0
- Accrued Liabilities $300
- Bank Loan - $25000
- Share Capital - $10000
- Retained Earnings - $12,000
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