1. Acquired $4,100 cash by issuing common stock. 2. Paid $700 for materials used to produce inventory. 3. Paid $1,910 to production workers. 4. Paid $921 rental fee for production equipment. 5. Paid $130 to administrative employees. 6. Paid $109 rental fee for administrative office equipment. 7. Produced 330 units of inventory of which 250 units were sold at a price of $13 each. Required Prepare an income statement and a balance sheet in accordance with GAAP. Complete this question by entering your answer in the tabs below. Income Statement Balance Sheet Prepare a balance sheet. (Do not round your intermediate calculations.) BAIRD COMPANY Balance Sheet as of 12/31/Y1 Assets Total assets Equity Total equity < Prev 7 of 8 Next > 1. Acquired $4,100 cash by issuing common stock. 2. Paid $700 for materials used to produce inventory. 3. Paid $1,910 to production workers. 4. Paid $921 rental fee for production equipment. 5. Paid $130 to administrative employees. 6. Paid $109 rental fee for administrative office equipment. 7. Produced 330 units of inventory of which 250 units were sold at a price of $13 each. Required Prepare an income statement and a balance sheet in accordance with GAAP. Complete this question by entering your answer in the tabs below. Income Statement Balance Sheet Prepare an income statement. (Do not round your intermediate calculations.) BAIRD COMPANY Income Statement for Year 1 < Income Statement Balance Sheet > 1. Acquired $57,000 cash by issuing common stock. 2. Paid $7,700 for the materials used to make its products, all of which were started and completed during the year. 3. Paid salaries of $3,600 to selling and administrative employees. 4. Paid wages of $6,000 to production workers. 5. Paid $7,800 for furniture used in selling and administrative offices. The furniture was acquired on January 1. It had a $1,800 estimated salvage value and a four-year useful life. 6. Paid $7,600 for manufacturing equipment. The equipment was acquired on January 1. It had a $1,600 estimated salvage value and a two-year useful life. 7. Sold inventory to customers for $25,600 that had cost $13,700 to make. Required Indicate how these events would affect the balance sheet and income statement by recording them in a horizontal financial statements model as indicated here. The first event is recorded as an example. (Enter any decreases to account balances with a minus sign. For changes on the Statement of Cash Flows, indicate whether the item is an operating activity (OA), investing activity (IA), financing activity (FA).) Balance Sheet Income Statement Event No. Assets Stockholders' Equity Cash + Inventory + BV Manuf. Equip. BV Office Common Ret. = Rev. - Furn. stock Ear. Exp. 1 57,000 + + + = 57,000 = - 2 + + + = 3 + + + = 4 + + + = 5a + + = 5b + + = 6a + + = 6b + + = + 7a + + + = 7b + = Cash Flow Net Inc. 57,000 FA A review of the accounting records of Gibson Manufacturing indicated that the company incurred the following payroll costs during the month of March. Assume the company's financial statements are prepared in accordance with GAAP. 1. Salary of the company president-$32,300. 2. Salary of the vice president of manufacturing-$16,200. 3. Salary of the chief financial officer-$19,400. 4. Salary of the vice president of marketing-$15,600. 5. Salaries of middle managers (department heads, production supervisors) in manufacturing plant-$197,000. 6. Wages of production workers-$943,000. 7. Salaries of administrative secretaries-$108,000. 8. Salaries of engineers and other personnel responsible for maintaining production equipment-$176,000. 9. Commissions paid to sales staff-$246,000. Required a. What amount of payroll cost would be classified as SG&A expense? b. Assuming that Gibson made 3,800 units of product and sold 3,040 of them during the month of March, determine the amount of payroll cost that would be included in cost of goods sold. (Do not round intermediate calculations.) a. Payroll cost to be included in SG&A cost b. Payroll cost to be included in cost of goods sold