1. Financial Statement
The Hobart Company incurred the following transactions during 2003:
a. Acquired $50,000 of cash capital from owners
b. Paid $10,000 to acquire manufacturing equipment
c. Paid $5,000 cash for materials used in production
d. Paid $2,000 for wages of production workers
e. Paid $8,000 in general, selling, and administrative costs
f. Recognized $1,000 of depreciation on the manufacturing equipment
g. Sold inventory for $18,000 cash
h. The cost of the inventory sold was $6,500
Show the financial statement effects of the transactions by completing the financial statement schedule provided.
Balance Sheet Income Statement
T/A Cash Inven Equip = Cont. Cap Ret Ear Rev. - Exp. = NI
Effects shown in Excel for you.