Vemon Manufacturing Company experienced the following accounting events during its first year of operation. With the exception of the adjusting entries for depreciation, assume that all transactions are cash transactions and that financial statement data are prepared in accordance with GAAP 1. Acquired $54.000 cash by Issuing common stock 2. Paid $8,000 for the materiais used to make its products, all of which were started and completed during the year. 3. Pald salaries of $4.300 to selling and administrative employees 4. Pald wages of $6,500 to production workers 5. Paid $4700 for furniture used in selling and administrative offices. The furniture was acquired on January 1. It had a $1,100 estimated salvage value and a three-year useful life. 6. Paid $11.600 for manufacturing equipment. The equipment was acquired on January 1. It had a $1,100 estimated salvage value and a three-year useful life 7. Sold Inventory to customers for $25.400 that had cost $13,300 to make Required How these events would affect the balance sheet and income statement by recording them in a horizontal financial statements model as indicated here. The first event is recorded as an example (Enter decreases to account balances with a minus algn.) Income Statement Assets Manut Cash + Inventory . Equip. 54,000 + Financial Statements Model Equity Orice Common Furn stock 54.000 Ret. EA Rey. Event No 1 2 3 Exp. Net Inc . 4 Sa .. 00 Ta Tb Tot Income Statement Assets - Inventory + Manuf. Equip Financial Statements Model Equity Office Common Furn. stock 54,000 + Cash + Event No. 1 Ret. Ear. Rev. Exp. Net Inc 54,000 + + = 2 + + 3 = 4 + Sa 5b 6b 7b Total Vernon Manufacturing Company experienced the following accounting events during its first year of operation with the exception of the adjusting entries for depreciation, assume that all transactions are cash transactions and that financial statement data are prepared In accordance with GAAP 1. Acquired $54.000 cash by Issuing common stock 2. Pald $8,000 for the materials used to make its products, all of which were started and completed during the year 3. Pald salaries of $4,300 to selling and administrative employees 4. Paid wages of $6,500 to production workers 5. Paid $4700 for furniture used in selling and administrative offices. The furniture was acquired on January 1. it had a $1.100 estimated salvage value and a three-year useful life 6. Paid $11.600 for manufacturing equipment. The equipment was acquired on January 1, it had a $1100 estimated salvage value and a three-year useful life. 7. Sold inventory to customers for $25,400 that had cost $13,300 to make. Required How these events would affect the balance sheet and income statement by recording them in a horizontal financial statements model as indicated here. The first event is recorded as an example (Enter decreases to account balances with a minus sign)
