4 The following transactions pertain to year 1, the first-year operations of Gibson Company. All inventory was started and completed during year 1. Assume that all transactions are cash transactions. 1. Acquired $12,000 cash by issuing common stock. 2. Paid $4,700 for materials used to produce inventory. 3. Paid $2,400 to production workers. 4. Paid $900 rental fee for production equipment. 5. Paid $350 to administrative employees. 6. Paid $400 rental fee for administrative office equipment. 7. Produced 400 units of inventory of which 360 units were sold at a price of $25 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. GIBSON COMPANY Income Statement for Year 1 $ 0 $ 0 4 The following transactions pertain to year 1, the first-year operations of Gibson Company. All inventory was started and completed during year 1. Assume that all transactions are cash transactions. 1. Acquired $12,000 cash by issuing common stock. 2. Paid $4,700 for materials used to produce inventory. 3. Paid $2,400 to production workers. 4. Paid $900 rental fee for production equipment. 5. Paid $350 to administrative employees. 6. Paid $400 rental fee for administrative office equipment. 7. Produced 400 units of inventory of which 360 units were sold at a price of $25 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. GIBSON COMPANY Balance Sheet as of 12/31/Year 1 Assets Total assets 0 Equity Total equity