Adams Manufacturing Company started operations on January 1, Year 1. During Year 1, the company engaged in the following transactions.

Issued common stock for $70,000.

Paid $22,000 cash to purchase raw materials used to make products.

Transferred $19,000 of raw materials to the production department.

Paid $24,500 cash for labor used to make products.

Paid $37,000 cash for overhead costs (assume actual and estimated overhead are the same).

Finished work on products that cost $72,000 to make.

Sold products that cost $64,000 to make for $83,000 cash.

Required

a. Prepare the December 31, Year 1, balance sheet.