Ho Designs experienced the following events during Year $1,$ its first year of operation:

$1$ Started the business when it acquired $$65,000$ cash from the issue of common stock.

$2$ Paid $$21,100$ cash to purchase inventory.

$3$ Sold inventory costing $$11,500$ for $$27,100$ cash.

$4$Physically counted inventory; had inventory of $$7,400$ on hand at the end of the accounting period.

Required

a$.$ Record the events in the T$-$accounts provided.

b$.$ Prepare an income statement and balance sheet.