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Scilla [17]
3 years ago
14

Wang Company began operations on January 1, 2018, by issuing common stock for $70,000 cash. During 2018, Wang received $88,000 c

ash from revenue and incurred costs that required $65,000 of cash payments.
Prepare a GAAP-based income statement and balance sheet for Wang Company for 2018, for the below scenario:

Wang is a manufacturing company. The $65,000 was paid to purchase the following items:

(1) Paid $10,000 cash to purchase materials that were used to make products during the year.

(2) Paid $20,000 cash for wages of factory workers who made products during the year.

(3) Paid $5,000 cash for salaries of sales and administrative employees.

(4) Paid $30,000 cash to purchase manufacturing equipment. The equipment was used solely to make products. It had a three-year life and a $6,000 salvage value. The company uses straight-line depreciation.

(5) During 2018, Wang started and completed 2,000 units of product. The revenue was earned when Wang sold 1,500 units of product to its customers.
Business
1 answer:
posledela3 years ago
3 0

Answer:

Wang Company

Statement of financial position

Equity and liabilities

Issued share capital  $70,000

Retained earnings     $45,000

                                   115,000

Assets

Non-Current assets

Fixed assets               $22,000

Current assets

Cash in hand               $93,000

                                     $115,000            

Wang company

Income statement

Net sales                      $88,000

Cost of sales                 $38,000

Gross margin                $50,000

Less:admin expenses   $5,000

Net Profit                       $45,0000

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________ costs refer to the sum of the fixed and variable costs for any given level of production. Target Break-even Total Value
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Based on microeconomic theory, <u>Total</u> costs refer to the sum of the fixed and variable costs for any given level of production.

<h3>What makes Total Cost?</h3>

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<h3>Components of Total Cost </h3>

The components of Total Cost include the following:

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5 0
2 years ago
Suppose a person quits a job earning ​$40,000 per year and starts a business with ​$90,000 withdrawn from a​ money-market accoun
weeeeeb [17]

Answer:

The correct answers are $40,000 and $13,500

Explanation:

The implicit cost of the business is ​$40,000 nothing for the​ entrepreneur's time plus $​13,500 nothing for the​ entrepreneur's funds ​(enter your response as an ​integer)

The implicit cost indicates the cost of an asset rather than selling it or renting it out. In other words, the company has to give up by deciding not to exploit an asset. For this case $40,000

For the other line

15% = 0.15

$90,000 x 15% = $13,500

4 0
2 years ago
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