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Slattery Company was formed on January 1, 2013, to build a single product. The company issued no-par common stock on that date for $340,000 cash. The product costs $22 to make, all of which is paid in cash at the time of production. Slattery sells each unit of the product for $39 on credit and incurs sales commissions per unit of $4 cash. In 2013, Slattery produced 11,000 units, shipped 10,000 units, and received payment for 9,000 units.
1a. Prepare the 2013 income statement under revenue recognition at the completion of the earnings process.Revenue xxxxCost of goods sold xxxxSelling Expense xxxxNet Income xxxxx
2a. Prepare the 2013 ending balance sheet under revenue recognition at the completion of the earnings process.Cash xxxxAccounts Receivable xxxxInventory xxxxxTotal xxxxxxxCommon stock, no par xxxxxRetained Earnings xxxxTotal xxxxxx
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