Campbell 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.

Acquired $$790,000$ of cash from the owners.

Purchased $$290,000$ of manufacturing equipment. The equipment has a $$34,000$ salvage value and a four$-$year useful life.

The company started and completed $5,400$ modems. Direct materials purchased and used amounted to $$44$ per unit.

Direct labor costs amounted to $$29$ per unit.

The cost of manufacturing supplies amounted to $$8$ per unit.

The company paid $$54,000$ to rent the manufacturing facility.

Campbell sold all $5,400$ units at a cash price of $$140$ per unit. $($Hint: It will be necessary to determine the manufacturing costs in order to record the cost of goods sold.$)$

The sales staff was paid a $$8\mathrm{.}00$ per unit sales commission.

Paid $$43,000$ to purchase equipment for administrative offices. The equipment was expected to have a $$3,400$ salvage value and a three$-$year useful life.

Administrative expenses consisting of office rental and salaries amounted to $$73,950.$

Required

a$.$ Record the transaction data for Campbell 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.

Complete this question by entering your answers in the tabs below.

Req B$1$

Req B$2$

Prepare an income statement.

Note: Do not round intermedlate calculations.

$\backslash$table$[[$CAMPBELL MODEMS, INCORPORATED$],[$Income Statement$],[$For the Period Ended December $31,$ year $1],[,],[,],[,],[,],[,],[,],[,]]$