Question
The following transactions pertain to year 1, the first-year operations of Rundle 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 Rundle Company. All inventory was started and completed during year 1. Assume that all transactions are cash transactions.
-
Acquired $4,300 cash by issuing common stock.
-
Paid $700 for materials used to produce inventory.
-
Paid $1,820 to production workers.
-
Paid $948 rental fee for production equipment.
-
Paid $120 to administrative employees.
-
Paid $112 rental fee for administrative office equipment.
-
Produced 340 units of inventory of which 220 units were sold at a price of $12 each.
Required Prepare an income statement and a balance sheet in accordance with GAAP.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started