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iew History Bookmarks Window Help 2 6 Help S Exercise 11-1A Employee compensatio

ID: 2514189 • Letter: I

Question

iew History Bookmarks Window Help 2 6 Help S Exercise 11-1A Employee compensation-Asset or expense LO 11-1 Walton Company started year 2 with $110,000 in its cash and common stock accounts. During year 2 Walton paid $82.500 cash for employee compensation. Assume this is the only transaction that occurred in year 2 Required a. Determine the total amount of assets at the end of year 2, assuming Walton is a manufacturing company and the employees were paid to make products b. Determine the amount of expense recognized on the year 2 income statement assuming Walton is a manufacturing company and the employees were paid to make products c. Determine the total amount of assets at the end of year 2, assuming Walton is a service company. d. Determine the amount of expense recognized on the year 2 income statement, assuming Walton is a service company a Total assets b Tolal expenses Service c. | Total assets 8 MacBook Air 20 a

Explanation / Answer

Manufacturing:
a) Total Assets : $110000-$82500= $27500
b) Total Expense: $82500

Service Company
a) Total Assets: $110000-$82500= $27500
b) Total Expense: $82500