Baird Company began operations on January 1, 2018, by issuing common stock for $
ID: 2603859 • Letter: B
Question
Baird Company began operations on January 1, 2018, by issuing common stock for $32,000 cash. During 2018, Baird received $56,400 cash from revenue and incurred costs that required $38,400 of cash payments.
Prepare a GAAP-based income statement and balance sheet for Baird Company for 2018, under each of the following independent scenarios:
B. Baird is in the car rental business. The $38,400 was paid to purchase automobiles. The automobiles were purchased on January 1, 2018, and have three-year useful lives, with no expected salvage value. Baird uses straight-line depreciation. The revenue was generated by leasing the automobiles.
**** Can you please help with the balance sheet***
Explanation / Answer
Question B). Solution :- Balance Sheet (Partial)
Long-term assets
Automobile (net)
25600(NOTE)
(NOTE) :- Automobile (Net i.e., after charging depreciation) = 38400 - (38400 / 3)
= 38400 - 12800
= $ 25600.
Assets Amount ($) Liabilities Amount ($)Long-term assets
Automobile (net)
25600(NOTE)
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