Having trouble with finding Inventory results because I'm not sure where the 14,000sold it for $25,000. Material cost 8,000.
Hoehn Manufacturing Company experienced the following accounting events during its forst year of operation. With the exception of the adjusting entries for depreciation,assume that all transactions are cash transactions.
1.Acquired $50,000 cash by insuring common stock.
2.Paid $8,000 for the materials used to make its products,all of which were started and completed during the year.
3. Paid salaries of $4,400 to selling and adminstrative employees.
4. Paid wages of $7,000 to production workers.
5.Paid $9,600 for furniture used in selling and administrative offices.The furniture was
aquired on Jan 1. It had a $1,600 estimated salvage value and a four-year useful life.
6.Paid $13,000 for manufacturing equipment. The equipment was aquired on Jan 1.It has a $1,000 estimated salvage value a 3year useful life.
7.Sold inventory to customers for $25,000 that had cost $14,000 to make.
Cash Total 33,000 Net Income 4,600
Asset side :inventory=? Income Statement Side=Net Income don't equal to 4,600.Expenses don't equal to 20,400 can you he me please.