Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Ming Chen (the owner) completed these transactions. Owner invested $60,000 cash in the company along with equipment that had a $15,000 market value in exchange for its common stock. The company paid $2,000 cash for rent of office space for the month. The company purchased $18,000 of additional equipment on credit (payment due within 30 days). The company completed work for a client and immediately collected the $1,600 cash earned. The company completed work for a client and sent a bill for $7,300 to be received within 30 days. The company purchased additional equipment for $5,000 cash. The company paid an assistant $2,400 cash as wages for the month. The company collected $4,500 cash as a partial payment for the amount owed by the client in transaction e. The company paid $18,000 cash to settle the liability created in transaction c. The company paid $1,500 cash in dividends to the owner (sole shareholder). Required: Enter the impact of each transaction on individual items of the accounting equation.

Exercise 6-2 variable costing income statement; explanation of difference in net operating income [lo6-2] ida sidha karya company is a family-owned company located on the island of bali in indonesia. the company produces a handcrafted balinese musical instrument called a gamelan that is similar to a xylophone. the gamelans are sold for $970. selected data for the company’s operations last year follow: units in beginning inventory 0 units produced 200 units sold 180 units in ending inventory 20 variable costs per unit: direct materials $ 130 direct labor $ 300 variable manufacturing overhead $ 30 variable selling and administrative $ 15 fixed costs: fixed manufacturing overhead $ 63,000 fixed selling and administrative $ 25,000 the absorption costing income statement prepared by the company’s accountant for last year appears below: sales $ 174,600 cost of goods sold 139,500 gross margin 35,100 selling and administrative expense 27,700 net operating income $ 7,400 required: 1. under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year? 2. prepare an income statement for last year using variable costing.