Question
The following transactions pertain to year 1, the first-year operations of Gibson Company. All inventory was started and completed during year 1. Assume that all
The following transactions pertain to year 1, the first-year operations of Gibson Company. All inventory was started and completed during year 1. Assume that all transactions are cash transactions.
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Acquired $12,000 cash by issuing common stock.
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Paid $4,700 for materials used to produce inventory.
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Paid $2,400 to production workers.
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Paid $900 rental fee for production equipment.
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Paid $350 to administrative employees.
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Paid $400 rental fee for administrative office equipment.
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Produced 400 units of inventory of which 360 units were sold at a price of $25 each.
Required Prepare an income statement and a balance sheet in accordance with GAAP.
***Missing something, need help identifying what I'm missing***
GIBSON COMPANY Income Statement for Year 1 Sales revenue Cost of goods sold Gross margin $ 9,000 7,200 $ 1,800 Administrative expense 750 Net income $ 1,050 GIBSON COMPANY Balance Sheet as of 12/31/Year 1 Assets Cash $ $ 12,250 Finished goods inventory 800 Total assets $ 13,050 Equity Common stock Retained earnings $ 12,000 1,050 Total equity $ 13,050Step by Step Solution
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