Consider the following information. Then produce a balance sheet and an income statement for Sandstone Widgets, Inc., as of January 31^st.

Date	Activity
Jan 1st	I raise $50,000 as follows to start a business manufacturing widgets. I contribute $30,000 of my own money and in return I issue myself 600 shares of $1 par value common stock. My Uncle Fritz contributes $10,000 and in return, I issue another 200 share of stock to Uncle Fritz. Aunt Lori loans me the remaining $10,000 the form of a 5-year note that pays interest at a rate of 11% per year, with interest payments due at the end of each month and principal due at the loans maturity (ie., it is NOT an amortized loan). I do not incur any legal expenses or organizing costs because I got all the forms from the library and filed the necessary papers with the State myself. All funds are collected as cash.
Jan 2nd	I spend $3,000 for equipment that I paid cash for, the cost of which included installation, which was capitalized. This equipment will be depreciated over 5 years toward zero salvage value using straight line depreciation. I also spend $37,000 for raw materials, of which half was paid for in cash and half was purchased from a supplier who offered terms of trade of 2/10 net 30 .[1]
Jan 3rd 28th	I manufacture 1,000 widgets. Each includes $5 of raw materials and one hour of direct labor. My workers are paid on an hourly basis of $23/ hour, which includes their benefits and payroll taxes. My books are pretty simple, so I include the gross amount of wages and payroll taxes due on those wagers into wages payable account. They are paid on the 15th of each month, so half of the first months wages have been paid by Jan 31st. Production is spread evenly throughout the month.
Jan 29th	I sell 800 widgets for $40 each. Half of the sales were for cash and half were credit sales with terms of trade offered to my customers of net 30. To facilitate this sale, I advertised in Widgets World during the month and was charged $500, which was paid to the magazine. I also paid myself $1,000 this month in salary for being the firms CEO.
Jan 30th	I enter in the books income taxes payable at a rate of 30% although I will not be making a deposit to the IRS for these taxes until the quarter is over on March 31st.
Jan 30th	My workers have managed to partially finish another 200 widgets by the end of the month. Each partially finished widget has $2 worth of raw materials and $8 worth of labor incorporated at this point into its production.
Jan 30th	I pay $500 in utilities and $1500 in rent for the month.

[1] Note, Inventory is entered into the books at the discounted amount (as if the discount will be taken).

Using GAAP