Benson Modems, Incorporated, makes modem cards that are used in notebook computers. The company completed the following transactions during year 1. All purchases and sales were made with cash.

1. Acquired $780,000 of cash from the owners.
2. Purchased $285,000 of manufacturing equipment. The equipment has a $33,000 salvage value and a four-year useful life.
3. The company started and completed 5,300 modems. Direct materials purchased and used amounted to $43 per unit.
4. Direct labor costs amounted to $28 per unit.
5. The cost of manufacturing supplies amounted to $7 per unit.
6. The company paid $53,000 to rent the manufacturing facility.
7. Benson sold all 5,300 units at a cash price of $135 per unit. (Hint: It will be necessary to determine the manufacturing costs in order to record the cost of goods sold.)
8. The sales staff was paid a $7.50 per unit sales commission.
9. Paid $42,000 to purchase equipment for administrative offices. The equipment was expected to have a $3,300 salvage value and a three-year useful life.
10. Administrative expenses consisting of office rental and salaries amounted to $73,450.

Required

a. Record the transaction data for Benson Modems, Incorporated, in the financial statements. The first transaction is recorded as an example.

b-1. Prepare an income statement.

b-2. Prepare a balance sheet.

ecord the transaction data for Benson Modems, Incorporated, in the financial statements. The first transaction is recorded as an example. ote: Enter decreases to account balances with a minus sign. Do not round intermediate calculations. Complete this question by entering your answers in the ta Prepare an income statement. Note: Do not round intermediate calculations. Prepare a balance sheet