Magnificent Modems, Incorporated, 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. Acquired $750,000 of cash from the owners. 2. Purchased $270,000 of manufacturing equipment. The equipment has a $30,000 salvage value and a four-year useful life. 3. The company started and completed 5,000 modems. Direct materials purchased and used amounted to $40 per unit. 4. Direct labor costs amounted to $25 per unit. 5. The cost of manufacturing supplies amounted to $4 per unit. 6. The company paid $50,000 to rent the manufacturing facility. 7. Magnificent sold all 5,000 units at a cash price of $120 per unit. (Hint. It will be necessary to determine the manufacturing costs in order to record the cost of goods sold.) 8. The sales staff was paid a $6 per unit sales commission. 9. Paid $39,000 to purchase equipment for administrative offices. The equipment was expected to have a $3,000 salvage value and a three-year useful life. 10. Administrative expenses consisting of office rental and salaries amounted to $71,950. Required a. Record the transaction data for Magnificent Modems, Incorporated, in the financial statements. The first transaction is recorded as an example. b-1. Prepare an income statement. b-2. Prepare a balance sheet. Return to question Answer is not complete. Complete this question by entering your answers in the tabs below. Prepare an income statement