Prepare an income statement
Course:- Accounting Basics
Reference No.:- EM131810868

Assignment Help
Assignment Help >> Accounting Basics

Question - The following transactions pertain to 2015, the first-year operations of Bailey Company. All inventories was started and completed during 2015. Assume that all transactions are cash transactions.

1. Acquired $4,500 cash by issuing common stock.

2. Paid $660 for materials used to produce inventory.

3. Paid $1,840 to production workers.

4. Paid $1,244 rental fee for production equipment.

5. Paid $100 to administrative employees.

6. Paid $116 rental fee for administrative office equipment.

7. Produced 360 units of inventory of which 290 units were sold at a price of $13 each.


1. Prepare an income statement. (Do not round intermediate calculations.).

2. Prepare a balance sheet.

3. Prepare statement of cash flows. (Do not round intermediate calculations. Amounts to be deducted should be indicated with a minus sign.).

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
on january 1, 2011, Sesame revised these estimates to a total useful life of 4 years and a salvage value of $10,000. Prepare Sesame's enty to record 2011 depreciation expens
The Andersons retain you to compute their tax liability for 2007. They are expecting to pay less tax than usual for several reasons. First, both became 65 during the year.
Describe how the separation of authorization of production transactions physical custody of inventories can be specified among the production, inventory, and cost accounti
Patrick Company expects to generate free-cash of $120,000 per year forever. If the firm's required return is 12 percent, the market value of debt is $300,000, the market value
Fred is a new partner in Gee & Co, a firm of interior designers. In discussion at a recent meeting of the partners Fred was told that the office building at which the firm i
For governmental agencies, a budget places a legal limit on expenditures. As employees are asked for input into the budgeting process, what types of biases are likely to be
Ken, a salaried employee, was terminated from his company in April of this year. Business had been slow since the beginning of the year, and each of the operating plants had l
Market conditions are such that sales made internally or externally will not affect market or transfer prices. Intermediate markets will always be available for Bayside, Col