Mastering Excel Mantooth Manufacturing Company experienced the following accounting events during its first year of operation. With the exception of the adjusting entries for depreciation, assume that all transactions are cash transactions.
1. Acquired $50,000 by issuing 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 administrative 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 acquired on January 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 acquired on January 1. It had a $1,000 estimated salvage value and a three-year useful life.
7. Sold inventory to customers for $25,000 that had cost $14,000 to make.
Construct a spreadsheet of the financial statements model as shown here.
Required Place formulas in row 16 to automatically add the columns. Also add formulas in column S to calculate net income after each event, and add formulas in row 18 to compute total assets and equity. Notice that you must enter the events since only the first one is shown as an example.
1. The column widths are set by choosing Format, then Column, and then Width.
2. The shading in columns B, N, and T is added by highlighting a column and choosing Format, then Cells, and then clicking on the tab titled Patterns and choosing a color.
3. The sum function is an easy way to add a column or row. For example, the formula in cell C16 is SUM(C6.C15).
4. As an example of the formulas in column S (net income), the formula in cell S7 is =O7