Magnificent Modems, Inc. makes modem cards that are used in notebook computers. The company completed the following transactions during year 1 . All purchases and sales were made with cash. 1. Aequired $950,000 ot eash from the owners. Label. the purchase of the equipenent as Event 2 a and the recognition of depreciation an R aneat 2b. 3. The coepasy mtarted and completed 7,000 nodems. Direct naterials purehanod and used amounted to 560 per unit. 4. Direct labor eosts amounted to $45 per unit. 5. The cost of manufacturing supplien purehaned and used amounted to $24 per unit. 5. The cost of manufactaring supplien purchased and uned amounted 6. The eompany paid $70,000 to rent the nanutacturing facility. 7. Yagnificent mold al1.7,000 unita at a cash price of 5220 per unit. Label the recognition of the aale as treat 7a and record the cost of goodin sold. ) .8. The aalei statf was paid a 116.00 per unit aalen connionion. 9. Paid $59,000 to purchase equipment for adninistrative oftices. The equipnent wain ekpeeted to bave a 55 , ood aalvage value and a three-year useful Iife. Label the purehase of the equipoent as gvest 9a and the recognition of depreciotion as Event 9b. 10. Adminetrative expenses conalsting of office rental and aalories anounted to 961;950. Required a. Record the transaction data for Magnificent Modems, Inc, in the financial statements like the one shown as follows. The first: transaction is recorded as an example. b-1. Prepare an income statement. b-2. Prepare a bolance sheet