The Tao Company engaged in the following transactions during 2014

a. Acquired $50,000 of cash by issuing common stock to owners

b. Paid $10,000 to acquire manufacturing equipment

c. Paid $5,000 cash for materials used in production

d. Paid $2,000 for wages of production workers

e. Paid $8,000 in general, selling, and administrative costs

f. Recognized $1,000 of depreciation on the manufacturing equipment

g. Sold inventory for $18,000 cash

h. The cost of the inventory sold was $6,500

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