Bagel Shearing Company was started in Year 1 when it acquired $61,500 cash from the issue of common stock. The following data summarize the companys first three years operating activities. Assume that all transactions were cash transactions.

Required

Prepare an income statement (use multistep format) and balance sheet for each fiscal year. (Hint: Record the transaction data for each accounting period in the accounting equation before preparing the statements for that year.)

Purchases of inventory Sales Cost of goods sold Selling and administrative expenses Year 1 $22,400 26,700 11,600 5,300 Year 2 $10,600 31,600 16,800 8,060 Year 3 $20,400 36,100 19,600 9,750 Income Statements For the Year Ended December 31 Year 1 Year 2 Year 3 0 0 0 Operating expenses $ 0 $ 0 $ 0 Balance Sheets As of Year Ended December 31 Year 1 Year 2 Year 3 Assets Total assets $ 0 $ 0 $ 0 Liabilities Stockholders' equity 0 0 0 Total stockholders' equity Total liabilities and stockholders' equity $ o $ 0 $ 0