Part1 Part2 R&D; Costs Halpern Company\'s controller prepared the following inco
ID: 2493603 • Letter: P
Question
Part1 Part2 R&D; Costs Halpern Company's controller prepared the following income statement and balance sheet at the end of the first year of the company's exstence Income Statement Sales revenue Cost of sales Operating expenses Net income 40,000 20,000 1200 Balance Shoot 33,000 Accounts payable 24,000 Notes payable 30,000 Common stock 20,000 S 5,000 40,000 50,000 12,000 Cash R&D; cots Property, plant, and equipment (net Retained eamings Investigation shows that R&D; costs include, among others, $8,000 of operating costs because the company is not yet operating at capacity. In addition, R&D; costs inckude $5,000 of materials that were wasted durning early production because "our employees made some unnecessary mistakes.Explanation / Answer
Income Statement $ Sales Revenue 40,000 Cost of Sales 20,000 Gross Profit 20,000 Operating Expenses 8,000 Operating Revenue 12,000 Net Revenue 12,000 Balance Sheet $ Cash 33,000 Inventory 24,000 Total Current Assets 57,000 R & D Cost 30,000 Property Plant and Equipment 20,000 Total Assets 107,000 Accounts Payable 5,000 Notes Payable 40,000 Total Liabilities 45,000 Common Stock 50,000 Retained Earnings 12,000 Total Shareholder's Equity 62,000 Total Liabilities and Shareholder's Equity 107,000