Baird Company began operations on January $1,$ Year $1,$ by issuing common stock for $$35,000$ cash. During Year $1,$ Baird received $$64,600$ cash from revenue and incurred costs that required $$49,600$ of cash payments.

Required

Prepare a GAAP$-$based income statement and balance sheet for Baird Company for Year $1$ under the following scenario:

Baird is a promoter of rock concerts. The $$49,600$ was paid to provide a rock concert that produced the revenue.