Gibson Company began operations on January 1, year 1, by issuing common stock for $32,000 cash. During year 1, Gibson received $55,900 cash from revenue and incurred costs that required $36,900 of cash payments.

Required Prepare a GAAP-based income statement and balance sheet for Gibson Company for year 1, for the below scenario:

1. Gibson is a promoter of rock concerts. The $36,900 was paid to provide a rock concert that produced the revenue.

GIBSON COMPANY Balance Sheet as of 12/31/Year 1 Assets Cash $ 0 Total assets Equity Common stock Retained earnings Total equity $ $ 0