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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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You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly half a million dollars. Your plan is to deposit
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Answer:

a.) $217,298.44

b.) $253,514.84.

c.) $239,061.37 .

Explanation:

<u>a. Determine how much you will have saved after 10 years</u>

This is an ordinary annuity question and you are required to find the Future value (FV) at year 10. Using a financial calculator, key in the following inputs;

Total duration of investment; N = 10

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PV = 0

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With the recurring payment increasing to 17,500 per year and the interest rate remaining at 8%, find the new Future value by keying in the following inputs;

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then compute Future value;  CPT FV = 253,514.843

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Total duration of investment; N = 10

Recurring payment; PMT = -15,000

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then compute Future value;  CPT FV = 239,061.369

Therefore, in 10 years, you will have saved $239,061.37 .

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