Question

ManCo manufacturing company paid cash for wages of production workers. how would the balance sheet and income statement look?

Answer 1

When ManCo manufacturing company pays cash for wages of production workers, it would decrease the company's cash balance and increase liabilities on the balance sheet, while decreasing the net income on the income statement.

Step-by-step explanation:

When ManCo manufacturing company pays cash for wages of production workers, it would have the following impact on the balance sheet and income statement:

1. Balance Sheet: The wages paid to production workers would be recorded as an expense under the 'Liabilities and Equity' section of the balance sheet. This would decrease the company's cash balance and increase the amount of liabilities.
2. Income Statement: The wages paid to production workers would be included as a cost of goods sold (COGS) expense in the income statement. This would decrease the company's net income.