Solomon Modems, Inc makes modem cards that are used in notebook computers The company completed the following transactions during 2017 All purchases and sales were made with cash PLEASE ONLY USE THIS FORMAT AND SHOW YOUR WORK Acquired $890,000 of cash from the owners Purchased $340,000 of manufacturing equipment The equipment has a $44,000 salvage value and a four year useful life Label the purchase of the equipment as Event 2a and the recognition of depreciation as Event 2b The company started and completed 6,400 modems Direct materials purchased and used amounted to $54 per unit Direct labor costs amounted to $39 per unit The cost of manufacturing supplies used amounted to $18 per unit The company paid $64,000 to rent the manufacturing facility Solomon sold all 6,400 units at a cash price of $190 per unit Label the recognition of the sale as Event 7a and the cost of goods sold as Event 7b (Hint It will be necessary to determine the manufacturing costs in order to record the cost of goods sold ) The sales staff was paid a $13 0 per unit sales commission Paid $53,000 to purchase equipment for administrative offices The equipment was expected to have a $4,400 salvage value and a three year useful life Label the purchase of the equipment as Event 9a and the recognition of depreciation as Event 9b Administrative expenses consisting of office rental and salaries amounted to $78,950 Required a Record the transaction data for Solomon Modems, Inc in the financial statements like the one shown below The first transaction is recorded as an example b 1 Use the following forms to prepare an income statement b 2 Use the following forms to prepare an balance sheet Required A Required B1 Required B2 Record the transaction data for Solomon Modems, Inc in the financial statements like the one shown below The first transaction is recorded as an example (Enter decreases to account balances with a minus sign Round your answers to the nearest whole dollar amount ) SOLOMON MODEMS, INC Assets Equity Income Statement Event Number Cash Inventory Manuf Equip Office Equip Common Stock Retained Earnings Rev Exp Net Inc 1 890,000 890,000 2a (340,000) 340,000 2b (74,000) 3 4 5 6 7a 7b 8 9a 9b 10 Total 550,000 0 266,000 0 890,000 0 0 0 0 Use the following forms to prepare an income statement SOLOMON MODEMS, INC Income Statement For the Period Ended December 31, 2017 0 $0 Use the following forms to prepare a balance sheet SOLOMON MODEMS, INC Balance Sheet As of December 31, 2017 Assets Total assets $0 Equity Total stockholders' equity $0

Question

Solomon Modems, Inc  makes modem cards that are used in notebook computers  The company completed the following transactions during 2017  All purchases and sales were made with cash  PLEASE ONLY USE THIS FORMAT AND SHOW YOUR WORK Acquired $890,000 of cash from the owners  Purchased $340,000 of manufacturing equipment  The equipment has a $44,000 salvage value and a four year useful life  Label the purchase of the equipment as Event 2a and the recognition of depreciation as Event 2b   The company started and completed 6,400 modems  Direct materials purchased and used amounted to $54 per unit  Direct labor costs amounted to $39 per unit  The cost of manufacturing supplies used amounted to $18 per unit  The company paid $64,000 to rent the manufacturing facility  Solomon sold all 6,400 units at a cash price of $190 per unit  Label the recognition of the sale as Event 7a and the cost of goods sold as Event 7b   (Hint  It will be necessary to determine the manufacturing costs in order to record the cost of goods sold ) The sales staff was paid a $13 0 per unit sales commission  Paid $53,000 to purchase equipment for administrative offices  The equipment was expected to have a $4,400 salvage value and a three year useful life  Label the purchase of the equipment as Event 9a and the recognition of depreciation as Event 9b   Administrative expenses consisting of office rental and salaries amounted to $78,950  Required a  Record the transaction data for Solomon Modems, Inc  in the financial statements like the one shown below  The first transaction is recorded as an example  b 1  Use the following forms to prepare an income statement  b 2  Use the following forms to prepare an balance sheet  Required A Required B1 Required B2 Record the transaction data for Solomon Modems, Inc  in the financial statements like the one shown below  The first transaction is recorded as an example  (Enter decreases to account balances with a minus sign  Round your answers to the nearest whole dollar amount ) SOLOMON MODEMS, INC  Assets   Equity Income Statement Event Number Cash   Inventory   Manuf  Equip    Office Equip    Common Stock   Retained Earnings Rev  Exp    Net Inc  1  890,000         890,000     2a  (340,000)     340,000         2b      (74,000)         3              4              5              6              7a              7b              8              9a              9b              10              Total 550,000   0   266,000   0   890,000   0 0 0   0 Use the following forms to prepare an income statement  SOLOMON MODEMS, INC  Income Statement For the Period Ended December 31, 2017 0 $0 Use the following forms to prepare a balance sheet  SOLOMON MODEMS, INC  Balance Sheet As of December 31, 2017 Assets  Total assets $0 Equity  Total stockholders' equity $0

Accepted Answer

The Answer is in the image, click to view ...

Question

Solomon Modems, Inc. makes modem cards that are used in notebook computers. The company completed the following transactions during 2017. All purchases and sales were

Step by Step Solution

Step: 1

Get Instant Access with AI-Powered Solutions

Step: 2

Step: 3

Ace Your Homework with AI