The following transactions pertain to 2018, the first-year operations of gibson company. all inventory was started and completed in 2018. assume that all transactions are cash transactions.1. acquired $12,000 cash by issuing common stock.2. paid $4,700 for materials used to produce inventory.3. paid $2,400 to production workers.4. paid $900 rental fee for production equipment.5. paid $350 to administrative employees.6. paid $400 rental fee for administrative office equipment.7. produced 400 units of inventory of which 360 units were sold at a price of $25 each. prepare an income statement and a balance sheet in accordance with gaap.

Mae jong corp. issues $1,000,000 of 10% bonds payable which may be converted into 10,000 shares of $2 par value ordinary shares. the market rate of interest on similar bonds is 12%. interest is payable annually on december 31, and the bonds were issued for total proceeds of $1,000,000. in accounting for these bonds, mae jong corp. will: (a) first assign a value to the equity component, then determine the liability component. (b) assign no value to the equity component since the conversion privilege is not separable from the bond.(c) first assign a value to the liability component based on the face amount of the bond.(d) use the “with-and-without” method to value the compound instrument.

Which of the following is not a characteristic of a weak economy? a. a low employment rateb. a high inflation ratec. a decreased gdpd. a high unemployment rate

Atoy store has a new game in stock, but customers aren't buying it. which of the following types of inventory increases when customers aren't buying this game? a. work-in-process b. raw materials c. finished goods d. in-transit