the following transactions pertain to 2015, the first year the following transac
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the following transactions pertain to 2015, the first year the following transactions pertain to 2015, the first year the following transactions pertain to 2015, the first year 3:55 PM ezto.mheducation.com Academics.. Week 7-A. learn.dco i.c. Air Jordans.... Ims.mhedu... Favorites value: 1.00 points The following transactions pertain to 2015, the first-year operations of Bailey Company. All inventory started and completed during 2015. Assume that all transactions are cash transactions. 1. Acquired $4,100 cash by issuing common stock. 2. Paid $650 for materials used to produce inventory 3. Paid $1,850 to production workers. 4. Paid $941 rental fee for production equipment. 5. Paid $110 to administrative employees 6. Paid $116 rental fee for administrative office equipment 7. Produced 310 units of inventory of which 180 units were sold at a price of $13 each. Required a-1. Prepare an income statement. (Do not round intermediate calculations.) BAILEY COMPANY Income Statement for 2015 ost of goods sold Administrative expenseExplanation / Answer
INCOME STATEMENT Sales revenue (180 units @ 13) 2340 Less: Cost of Goods sold 1998 (180 units @11.10) Gross Margin 342 Less: Admin expense Admin salaries 110 Rental fees of office equipment 116 Net Income 116 BALANCE SHEET Assets: Cash (4100+2340-650-1850-941-110-116) 2773 Finished Goods (130 units @11.10) 1443 Total Assets 4216 Stockholder's equity Common Stock 4100 Retained earnings 116 Total Stockholder's equity 4216 STATEMENT OF CASH FLOWS: Cash flows from Operating Activities Inflow from revenue 2340 Outflow from inventory -650 Outflow from admin expense -226 Outflow from wages -1850 Outflow from Rental of Pproduction equip, -941 Net Cashflows from operating Activities 1327 Cashflows from Investing activities 0 Casflows from Financing Activities Issue of Common Stock 4100 Net Cash increase during the year 2773 Add: Beginning Balance of cash 0 Less: Ending Balance of cash 2773 Note: Cost of Goods sold/Ending Inventory: Cost of Manufacture: Material inventory 650 labour cost 1850 Rental of factory equipment 941 Total cost of Goods manufactured 3441 Number of Units produced 310 Cost per unit 11.1 Cost of goods sold (180 units @11.10) 1998 Ending Inventory (130 units @11.10) 1443
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