PLEASE HELP ME GUYS I NEED TO ANSWER ALL QUESTIONS I APPRECIATED THE HELP REALLY
ID: 2452593 • Letter: P
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PLEASE HELP ME GUYS I NEED TO ANSWER ALL QUESTIONS I APPRECIATED THE HELP REALLY LOVE U GUYS STRUGGLING LOT
1.
ABC Company started year 1 with $135,000 in its cash and common stock accounts. During year 1, ABC paid $101,250 cash for employee compensation and $31,050 cash for materials.
Determine the total amount of assets and the amount of expense shown on the year 1 financial statements assuming ABC used the labor and materials to make 1,500 chairs. Further, assume that ABC sold 1,200 of the chairs it made. State the name(s) of the expense account(s) shown on the income statement.
Total asset
total expenses
name of the expenses
Determine the total amount of assets and the amount of expense shown on the year 1 financial statements assuming ABC 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
Total asset
total expenses
name of the expenses
Required:Explanation / Answer
Total cash = 135000
cash paid for employee compensation = 101250
Cash paid for material = 31050
Cash in hand = 135000-101250-31050 = 2700
Total asset = Cash 2700 + chairs 132300
Total expenses = (Labour 101250) + (material 31050 )
Name of expenses = Direct material cost and direct labour cost
If ABC sold 1,200 of the chairs it made
Cost per chair= 132300/ 1500 = 88.2
1200 chair = 1200*88.2 = 105840
Total asset = Cash 2700 + [chairs 26460 (132300 -105840)]
Total expenses = (Labour 101250) + (material 31050 )
Name of expenses = Direct material cost and direct labour cost
ABC used the labor and materials to provide dental cleaning services to 500 patients
Total asset = cash 2700
Total expenses= (Labour 101250) + (material 31050 )
name of the expenses = Direct material cost and direct labour cost
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