Keystone Manufacturing Company started operations on January 1, 2019. During 2019, the company engaged in the following transactions:

Issued common stock for $40,000.

Paid $10,000 cash to purchase raw materials used to make products.

Transferred $9,000 of raw materials to the production department.

Paid $12,000 cash for labor used to make products.

Paid $18,000 cash for overhead costs (assume actual and estimated overhead are the same).

Finished work on products that cost $35,000 to make.

Sold products that cost $31,500 to make for $42,500 cash.

Required

Prepare the December 31, 2019, balance sheet.

Prepare the December 31, 2019, income statement.

Prepare the December 31, 2019, balance sheet.

KEYSTONE MANUFACTURING COMPANY
Balance Sheet for 2019
Assets
Cash	$42,500
Equipment
Raw material inventory
Work in process inventory
Finished goods inventory
Total assets	$42,500
Equity
Common stock	$40,000
Retained earnings
Total equity	$40,000

Prepare the December 31, 2019, income statement.

KEYSTONE MANUFACTURING COMPANY
Income Statement for 2019
	$0
	$0