Fanning Manufacturing Company started operations on January 1 , Year 1 . During Year 1 , the company engaged in the following transactions. 1. Issued common stock for $74,000. 2. Paid $30,000 cash to purchase raw materials used to make products. 3. Transferred $23,000 of raw materials to the production department. 4. Paid $26,500 cash for labor used to make products. 5. Paid $41,000 cash for overhead costs (assume actual and estimated overhead are the same). 6. Finished work on products that cost $80,000 to make. 7. Sold products that cost $68,000 to make for $89,000 cash. Required a. Prepare the December 31 , Year 1 , balance sheet. b. Prepare the December 31 , Year 1, income statement. Complete this question by entering your answers in the tabs below. Prepare the December 31 , Year 1 , balance sheet. Complete this question by entering your answers in the tabs below. Prepare the December 31 , Year 1 , income statement