1. Acquired $4,500 cash by issuing common stock. 2. Paid $700 for materials used to produce inventory. 3. Paid $1,990 to production workers. 4. Paid $430 rental fee for production equipment. 5. Paid $120 to administrative employees. 6. Paid $106 rental fee for administrative office equipment. 7. Produced 300 units of inventory of which 150 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.) FRANKLIN COMPANY Income Statement for Year 1 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.) FRANKLIN COMPANY Balance Sheet as of 12/31/Y1 Assets Total assets $ 0 Equity Total equity $ 0