Munoz Company began operations on January 1, year 1, by issuing common stock for $33,000 cash. During year 1, Munoz 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 Munoz Company for year 1, for the below scenario:

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

Prepare an Income statement and Balance sheet.