Income Balance Sheet Statement Prepare an income statement. (Do not round your intermediate calculations.) ROONEY COMPANY Income Statement for Year 1 Sales revenue Cost of goods sold Gross margin $

Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter9: Working Capital
Section: Chapter Questions
Problem 38P
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The following transactions pertain to Year 1, the first-year operations of Rooney Company. All inventory was started and completed
during Year 1. Assume that all transactions are cash transactions.
1. Acquired $4,900 cash by issuing common stock.
2. Paid $660 for materials used to produce inventory.
3. Paid $1,900 to production workers.
4. Paid $1,078 rental fee for production equipment.
5. Paid $90 to administrative employees.
6. Paid $106 rental fee for administrative office equipment.
7. Produced 340 units of inventory of which 190 units were sold at a price of $13 each.
Required
Prepare an income statement and a balance sheet in accordance with GAAP.
Transcribed Image Text:The following transactions pertain to Year 1, the first-year operations of Rooney Company. All inventory was started and completed during Year 1. Assume that all transactions are cash transactions. 1. Acquired $4,900 cash by issuing common stock. 2. Paid $660 for materials used to produce inventory. 3. Paid $1,900 to production workers. 4. Paid $1,078 rental fee for production equipment. 5. Paid $90 to administrative employees. 6. Paid $106 rental fee for administrative office equipment. 7. Produced 340 units of inventory of which 190 units were sold at a price of $13 each. Required Prepare an income statement and a balance sheet in accordance with GAAP.
Income
Statement
Balance Sheet
Prepare an income statement. (Do not round your intermediate calculations.)
ROONEY COMPANY
Income Statement for Year 1
Sales revenue
Cost of goods sold
Gross margin
$
$
Transcribed Image Text:Income Statement Balance Sheet Prepare an income statement. (Do not round your intermediate calculations.) ROONEY COMPANY Income Statement for Year 1 Sales revenue Cost of goods sold Gross margin $ $
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