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.

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