Weib Manufacturing experienced the following events during its first accounting period: 1. Recognized revenue from cash sale of products. 2. Recognized cost of goods sold from sale referenced in Event 1. 3. Acquired cash by issuing common stock. 4. Paid cash to purchase raw materials that were used to make products. 5. Paid wages to production workers. 6. Paid salaries to administrative staff. 7. Recognized depreciation on manufacturing equipment. 8. Recognized depreciation on office furniture. Required Use a horizontal financial statements model to show how each event affects the GAAP-based balance sheet and income statement. Select Increase or Decrease to show the effect on each element. Also, for events that affect the Statement of Cash Flows indicate whether the event is a financing activity (FA), an investing activity (IA), or an operating activity (OA). The first transaction has been recorded as an example. Show accumulated depreciation as a decrease in the book value of the appropriate asset account. Note: Leave cells blank if no input is needed. Check my work Horizontal Financial Statements Model Balance Sheet Income Statement Assets Stockholders' Equity Event Number Book Value Book Value Cash + Inventory + Manufacturing + Equipment Office Furniture Common Stock + Retained Earnings Revenue Expenses Net Income 1. Increase + + Increase Increase Increase 2. + + 3. + + 4. + 5. + 6. + + 7. 8.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Weib Manufacturing experienced the following events during its first accounting period:
1. Recognized revenue from cash sale of products.
2. Recognized cost of goods sold from sale referenced in Event 1.
3. Acquired cash by issuing common stock.
4. Paid cash to purchase raw materials that were used to make products.
5. Paid wages to production workers.
6. Paid salaries to administrative staff.
7. Recognized depreciation on manufacturing equipment.
8. Recognized depreciation on office furniture.
Required
Use a horizontal financial statements model to show how each event affects the GAAP-based balance sheet and income statement.
Select Increase or Decrease to show the effect on each element. Also, for events that affect the Statement of Cash Flows indicate
whether the event is a financing activity (FA), an investing activity (IA), or an operating activity (OA). The first transaction has been
recorded as an example. Show accumulated depreciation as a decrease in the book value of the appropriate asset account.
Note: Leave cells blank if no input is needed.
Check my work
Horizontal Financial Statements Model
Balance Sheet
Income Statement
Assets
Stockholders' Equity
Event
Number
Book Value
Book Value
Cash
+
Inventory
+
Manufacturing
+
Equipment
Office
Furniture
Common
Stock
+
Retained
Earnings
Revenue
Expenses
Net Income
1.
Increase
+
+
Increase
Increase
Increase
2.
+
+
3.
+
+
4.
+
5.
+
6.
+
+
7.
8.
Transcribed Image Text:Weib Manufacturing experienced the following events during its first accounting period: 1. Recognized revenue from cash sale of products. 2. Recognized cost of goods sold from sale referenced in Event 1. 3. Acquired cash by issuing common stock. 4. Paid cash to purchase raw materials that were used to make products. 5. Paid wages to production workers. 6. Paid salaries to administrative staff. 7. Recognized depreciation on manufacturing equipment. 8. Recognized depreciation on office furniture. Required Use a horizontal financial statements model to show how each event affects the GAAP-based balance sheet and income statement. Select Increase or Decrease to show the effect on each element. Also, for events that affect the Statement of Cash Flows indicate whether the event is a financing activity (FA), an investing activity (IA), or an operating activity (OA). The first transaction has been recorded as an example. Show accumulated depreciation as a decrease in the book value of the appropriate asset account. Note: Leave cells blank if no input is needed. Check my work Horizontal Financial Statements Model Balance Sheet Income Statement Assets Stockholders' Equity Event Number Book Value Book Value Cash + Inventory + Manufacturing + Equipment Office Furniture Common Stock + Retained Earnings Revenue Expenses Net Income 1. Increase + + Increase Increase Increase 2. + + 3. + + 4. + 5. + 6. + + 7. 8.
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