Problem 10-23

Problem 10-23 Event Assets Equity Income Statement Manuf. Office Common Cash No. Cash Invent. + Equip.* +| Furn.* Stock + Ret. Ear. Rev. Exp. Net Inc. Flow 68,000 68,000 FA 1. 68,000 2. 3. ...... 5a. 5b. 6a. 6b. 7a. 7b. Total *Record accumulated depreciation as negative amounts under these columns.Problem 10-23 Effect of product versus period costs on nancial statements Sinclair Manufacturing Company experienced the following accounting events during its first year of operation. With the exception of the adjusting entries for depreciation, assume that all transactions are cash transactions and that financial statement data are prepared in accordance with GAAP. 1. Acquired $63,000 cash by issuing common stock. 2. Paid $8,700 for the materials used to make its products, all of which were started and completed during the year. 3. Paid salaries of $4,500 to selling and administrative employees. 4. Paid wages of $10,000 ho production workers. 5. Paid $9,600 for furniture used in selling and administrative offices. The furniture was acquired on January 1. It had a $1,600 estimated salvage value and a four-year useful life. 6. Paid $16,000 for manufacturing equipment. The equipment was acquired on January 1. It had a $1,000 estimated salvage value and a veayear useful life. 7. Sold inventory to customers for $35,000 that had cost $14,000 to make