Mueller Electronics Company experienced the following events during its first accounting period: 1. Received $87,000 cash by

Question:

Mueller Electronics Company experienced the following events during its first accounting period:
1. Received $87,000 cash by issuing common stock.
2. Paid $30,000 cash for wages to production workers.
3. Paid $15,000 for salaries to administrative staff.
4. Purchased for cash and used $16,000 of raw materials.
5. Recognized $1,000 of depreciation on administrative offices.
6. Recognized $1,500 of depreciation on manufacturing equipment.
7. Recognized $48,000 of sales revenue from cash sales of products.
8. Recognized $30,000 of cost of goods sold from the sale referenced in Event 7.
Required
Use a horizontal model to show how each event affects the and income statement. Assume the are prepared in accordance with GAAP. Indicate whether the event increases (I), decreases (D), or does not affect (NA) each element of the The first transaction is shown as an example.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...