Question
Zachary Company started year 1 with $345,000 in its cash and common stock accounts. During year 1, Zachary paid $258,750 cash for employee compensation and
Zachary Company started year 1 with $345,000 in its cash and common stock accounts. During year 1, Zachary paid $258,750 cash for employee compensation and $79,350 cash for materials.
Required
Determine the total amount of assets and the amount of expense shown on the year 1 financial statements assuming Zachary used the labor and materials to make 1,500 chairs. Further, assume that Zachary sold 1,200 of the chairs it made. State the name(s) of the expense account(s) shown on the income statement.
Determine the total amount of assets and the amount of expense shown on the year 1 financial statements assuming Zachary used the labor and materials to provide dental cleaning services to 500 patients. State the name(s) of the expense account(s) shown on the income statement.
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