The Szakos Company Engaged in the Following Transactions During 2013

question 58

Essay

The Szakos Company engaged in the following transactions during 2013:
a) Acquired $50,000 of cash by issuing common stock to 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
Required:
Show the balance sheet and income statement effects of the transactions by completing the financial statement model provided.

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Definitions:

Point-Of-Sale System

An EFT system that enables consumers to directly transfer funds from a bank account to a merchant.

Direct Pay System

A payment model where payers (such as employers or government entities) pay providers directly for healthcare services, bypassing traditional insurance companies.

Appellate Court

A higher court that reviews the decisions of lower courts to determine if legal errors were made that could change the outcome of a case.

Fraudulent Transactions

Financial transactions made with the intention of deceiving or defrauding others.