Thornton Modems, Inc makes modem cards that are used in notebook computers The company completed the following transactions during year 1 All purchases and sales were made with cash Acquired $910,000 of cash from the owners Purchased $350,000 of manufacturing equipment The equipment has a $46,000 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 6,600 modems Direct materials purchased and used amounted to $56 per unit Direct labor costs amounted to $41 per unit The cost of manufacturing supplies purchased and used amounted to $20 per unit The company paid $66,000 to rent the manufacturing facility Thornton sold all 6,600 units at a cash price of $200 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 $14 00 per unit sales commission Paid $55,000 to purchase equipment for administrative offices The equipment was expected to have a $4,600 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 $79,950 Required a Record the transaction data for Thornton Modems, Inc in the financial statements like the one shown as follows The first transaction is recorded as an example b 1 Prepare an income statement b 2 Prepare a balance sheet Complete this question by entering your answers in the tabs below Req A THORNTON MODEMS, INC Event No Balance Sheet Income Statement Assets Equity Cash Inventory Manuf Equip Office Equip Common Stock Retained Earnings Rev Exp Net Inc 1 910,000 910,000 2a 2b 3 4 5 6 7a 7b 8 9a 9b 10 Total Req B1 Prepare an income statement (Do not round intermediate calculations Round your answers to the nearest whole $ amount Req B2 Prepare a balance sheet (Do not round intermediate calculations Round your answers to the nearest whole dollar amount ) Please do this ASAP my homework is due TONIGHT PLZ THORNTON MODEMS, INC Income Statement For the Period Ended December 31, year 1 THORNTON MODEMS, INC Balance Sheet As of December 31, year 1 Assets Total assets Equity Total stockholders' equity

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

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 25, 2024

Thornton Modems, Inc. makes modem cards that are used in notebook computers. The company completed the following transactions during year 1. All purchases and sales

Thornton Modems, Inc. makes modem cards that are used in notebook computers. The company completed the following transactions during year 1. All purchases and sales were made with cash.

Acquired $910,000 of cash from the owners.
Purchased $350,000 of manufacturing equipment. The equipment has a $46,000 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 6,600 modems. Direct materials purchased and used amounted to $56 per unit.
Direct labor costs amounted to $41 per unit.
The cost of manufacturing supplies purchased and used amounted to $20 per unit.
The company paid $66,000 to rent the manufacturing facility.
Thornton sold all 6,600 units at a cash price of $200 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 $14.00 per unit sales commission.
Paid $55,000 to purchase equipment for administrative offices. The equipment was expected to have a $4,600 salvage value and a three-year useful life. Label the purchase of the equipment as Event 9aand the recognition of depreciation as Event 9b.
Administrative expenses consisting of office rental and salaries amounted to $79,950.

Required

a. Record the transaction data for Thornton Modems, Inc. in the financial statements like the one shown as follows. The first transaction is recorded as an example.
b-1. Prepare an income statement.
b-2. Prepare a balance sheet. Complete this question by entering your answers in the tabs below

Req A

THORNTON MODEMS, INC.

Event No.

Balance Sheet

Income Statement

Assets

Equity

Cash

Inventory

Manuf. Equip.

Office Equip.

Common Stock

Retained Earnings

Rev.

Exp.

Net Inc.

910,000

2a.

2b.

7a.

7b.

9a.

9b.

10.

Total

Req B1. Prepare an income statement. (Do not round intermediate calculations. Round your answers to the nearest whole $ amount
Req B2. Prepare a balance sheet. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)

Please do this ASAP my homework is due TONIGHT PLZ!

THORNTON MODEMS, INC. Income Statement For the Period Ended December 31, year 1 THORNTON MODEMS, INC. Balance Sheet As of December 31, year 1 Assets: Total assets Equity: Total stockholders' equity