Generally Accepted Accounting Principles and Horizontal Statements Model Essay Sample

Klyn Manufacturing Company experienced the undermentioned accounting events during its first twelvemonth of operation. Except for the depreciation seting entries. all minutess are hard currency minutess. 1. Acquired $ 50. 000 hard currency from the issue of common stock.

2. Paid $ 6. 800 for the stuffs that were used to do its merchandises. All merchandises started were completed during the period. 3. Paid wages of $ 4. 300 to merchandising and administrative employees. 4. Paid rewards of $ 7. 200 to production workers.

5. On January 1. paid $ 9. 000 to purchase furniture used in selling and administrative offices. 6. Recorded one-year depreciation on the furniture referred to in Event 5. The furniture had a $ 1. 000 estimated salvage value and a 5-year utile life. 7. On January 1. paid $ 23. 000 to purchase fabrication equipment. 8. Recorded one-year depreciation on the equipment referred to in Event 7. It had a $ 3. 000 estimated salvage value and a 4-year utile life. 9. Completed 4. 000 units of merchandise. Determine the cost per unit and the gross revenues monetary value per unit presuming the gross revenues monetary value is cost plus 60 % of cost. Record the sale of 3. 000 units of merchandise. 10. Code the acknowledgment of cost of goods sold for the units sold in Event 9.

Required
Show how these events would impact the balance sheet and income statement by entering them in a horizontal fiscal statements theoretical account like the one shown below.