Kirsoff Company makes eBook readers. The company had the following amounts at th
ID: 2366052 • Letter: K
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Kirsoff Company makes eBook readers. The company had the following amounts at the beginning of 2011: Cash, $660,000; Raw Materials Inventory, $51,000; Work in Process Inventory, $18,000; Finished Goods Inventory, $43,000; Common Stock, $583,000; and Retained Earnings, $189,000. Kirsoff experienced the following accounting events during 2011. Other than the adjusting entries for depreciation, assume that all transactions are cash transactions. 1. Paid $23,000 of research and development costs. 2. Paid $47,000 for raw materials that will be used to make eBook readers. 3. Placed $83,000 of the raw materials cost into the process of manufacturing eBook readers. 4. Paid $60,000 for salaries of selling and administrative employees. 5. Paid $91,000 for wages of production workers. 6. Paid $90,000 to purchase equipment used in selling and administrative offices. 7. Recognized depreciation on the office equipment. The equipment was acquired on January, 1, 2011. It has a $10,000 salvage value and a five-year life. The amount of depreciation is computed as [(Cost - salvage)Explanation / Answer
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