Weib Manufacturing experienced the following events during its first accounting period
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Business, 25.04.2020 00:45 natalyarenassalgado
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
Use the following horizontal financial statements model to show how each event affects the GAAP-based balance sheet and income statement. Indicate whether the event increases (A), decreases (D), or has no effect (NA) on each element of the financial statements.
Event No. Cash + Inventory + Manuf. Equip. + Office Furn. = Common Stock
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