A. Issued common stock for a $5000 cash investment.
B. Purchased delivery truck at the beginning of the year at a cost of $10000 cash. The truck is expected to last five years and will be worthless at the end of
C. Manufactured and sold 500000 components the first year. The costs incurred to manufacture the components are: (1) $1000 monthly rent on a facility that
included utilities and insurance (2) $400000 of raw materials purchased on account ($100000 is still unpaid as of year end but all materials were used in
manufacturing) and (3) $190000 paid in salaries and wages to employees and supervisors.
D. Paid $100000 to sales and office staff for salaries and wages.
E. Sold all compoents on account for $2 each. As of year-end $150000 is due from customers. Required Prepare an income statement under the accrual basis. Ignore income taxes.