The following events apply to equipment services inc. in its first year of operation: 1. acquired $60,000 cash from the issue of common stock.2. received a $8,200 cash advance for services to be provided in the future.3. purchased $2,000 of supplies on account.4. earned $36,000 of service revenue on account.5. incurred $16,100 of operating expenses on account.6. collected $28,500 cash from accounts receivable.7. made a $15,100 payment on accounts payable.8. paid a $2,000 cash dividend to the stockholders.9. recognized $1,600 of supplies expense.10. recorded $3,100 of accrued salaries expense.11. recognized $3,100 of revenue for services provided to the customer in event 2.12. recognized $500 of accrued interest revenue. requireda. record the events in t-accounts and determine the ending account balances. b. test the equality of the debit and credit balances of the t-accounts by preparing a trial balance

Walsh company manufactures and sells one product. the following information pertains to each of the company’s first two years of operations: variable costs per unit: manufacturing: direct materials $ 25 direct labor $ 12 variable manufacturing overhead $ 5 variable selling and administrative $ 4 fixed costs per year: fixed manufacturing overhead $ 400,000 fixed selling and administrative expenses $ 60,000 during its first year of operations, walsh produced 50,000 units and sold 40,000 units. during its second year of operations, it produced 40,000 units and sold 50,000 units. the selling price of the company’s product is $83 per unit. required: 1. assume the company uses variable costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 2. assume the company uses absorption costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 3. reconcile the difference between variable costing and absorption costing net operating income in year 1.