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Required information Problem 10-26A (Algo) Service versus manufacturing companies LO 10-4 [The following information applies to the questions displayed below.] Solomon Company began operations on

Required information Problem 10-26A (Algo) Service versus manufacturing companies LO 10-4 [The following information applies to the questions displayed below.] Solomon Company began operations on January 1, Year 1, by issuing common stock for $37,000 cash. During Year 1, Solamon received $53,800 cash from revenue and incurred costs that required $37,800 of cash payments. Problem 10-26A (Algo) Part c Prepare a GAAP-based income statement and balance sheet for Solomon Company for Year 1 under the following scenario: c. Solomon is a manufacturing company. The $37,800 was paid to purchase the following items: (1) Paid $3,900 cash to purchase materials that were used to make products during the year. (2) Paid $1,250 cash for wages of factory workers who made products during the year. (3) Paid $17,450 cash for salaries of sales and administrative employees. (4) Paid $15,200 cash to purchase manufacturing equipment. The equipment was used solely to make products. It had a three-year lif and a $2,300 salvage value. The company uses straight-line depreciation. (5) During Year 1, Solomon started and completed 2,100 units of product. The revenue was earned when Solomon sold 1,700 units of product to its customers.
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Required information Problem 10-26A (Algo) Service versus manufacturing companles LO 10.4 [The following information applies to the questions displayed below] Solomon Company began operations on January 1 , Year 1 , by issuing common stock for $37,000 cash. During Year 1. Solamon received $53,800 cash from revenue and incurred costs that requited $37,800 of cash payments. Problem 10-26A (Algo) Part c Prepare a GAAP.based income statement and balance sheet for Solomon Company for Year 1 under the following scenario: c. Solomon is a manufacturing company. The $37,800 was paid to purchase the following items: (1) Paid $3,900 cash to purchase materials that were used to make products during the year. (2) Paid \$1,250 cash for wages of factory workers who made products during the year. (3) Paid $17,450 cash for salaries of sales and administrative employees. (4) Paid $15,200 cash to purchase manufacturing equipment. The equipment was used solely to make products, it had a three-year and a$2,300 salvage value. The company uses straight-line depreciation. (5) During Year 1, Solomon started and completed 2,100 units of product. The revenue was earned when Solomon sold 1,700 units of produet to its customers

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