Franklin Manufacturing Company started operations on January 1, Year 1. During Year 1, the company engaged in the following transactions. 1. Issued common stock for $76,000. 2. Paid $34,000 cash to purchase raw materials used to make products. 3. Transferred $25,000 of raw materials to the production department. 4. Paid $27,500 cash for labor used to make products. 5. Paid $43,000 cash for overhead costs (assume actual and estimated overhead are the same). 6. Finished work on products that cost $84,000 to make. 7. Sold products that cost $70,000 to make for $92,000 cash. Required a. Prepare the December 31, Year 1, balance sheet. b. Prepare the December 31, Year 1, income statement. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Prepare the December 31, Year 1, balance sheet. Required A Required B Prepare the December 31, Year 1, balance sheet. FRANKLIN MANUFACTURING COMPANY Balance Sheet for Year 1 Assets Cash $ 92,000 X Raw material inventory Work in process inventory Finished goods inventory Total assets $ 92,000 Equity Common stock Retained earnings $ 76,000 Total equity $ 76,000 Complete this question by entering your answ UUUUUUUU Required A Required B Prepare the December 31, Year 1, income statemen FRANKLIN MANUFACTURING COMPANY Income Statement for Year 1. Sales revenue $ 92,000 Cost of goods sold (70,000) Gross margin $ 22,000 Net income $ 22,000