The following transactions pertain to year 1, the first-year operations of Rundle Company. All inventory was started and completed during year 1. Assume that all transactions are cash transactions. Acquired $4,300 cash by issuing common stock. Paid $700 for materials used to produce inventory. Paid $1,820 to production workers. Paid $948 rental fee for production equipment. Paid $120 to administrative employees. Paid $112 rental fee for administrative office equipment. Produced 340 units of inventory of which 220 units were sold at a price of $12 each. Required Prepare an income statement and a balance sheet in accordance with GAAP.

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 3RE: Shaquille Corporation began the current year with inventory of 50,000. During the year, its...
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The following transactions pertain to year 1, the first-year operations of Rundle Company. All inventory was started and completed during year 1. Assume that all transactions are cash transactions.
Acquired $4,300 cash by issuing common stock.

Paid $700 for materials used to produce inventory.

Paid $1,820 to production workers.

Paid $948 rental fee for production equipment.

Paid $120 to administrative employees.

Paid $112 rental fee for administrative office equipment.

Produced 340 units of inventory of which 220 units were sold at a price of $12 each.
Required
Prepare an income statement and a balance sheet in accordance with GAAP. 

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