The following transactions pertain to 2012, the first-year operations of Hall Co

Question

The following transactions pertain to 2012, the first-year operations of Hall Company. All inventory was started and completed during 2012. Assume that all transactions are cash transactions. 1. Acquired $4,900 cash by issuing common stock. 2. Paid $690 for materials used to produce inventory. 3. Paid $1,860 to production workers. 4. Paid $1,594 rental fee for production equipment. 5. Paid $120 to administrative employees. 6. Paid $114 rental fee for administrative office equipment. 7. Produced 370 units of inventory of which 280 units were sold at a price of $14 each.

Explanation / Answer

Income and Expense Account Particulars Expense($) Particulars Income($) Material consumption 690 Sales Labou cost 1860 (280*14) 3920 Rent for production equipment 1594 Closing stock Administrative cost 120 (690+1860+1594)/370*90 1008 Rent for administrative office 114 Profit transferred to capital a/c 550 4928 4928 Balance Sheet Liability Amount ($) Assets Amount ($) Common stock 4900 Cash in hand 5400 Profit transferred 550 5450 5400

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.