Problem 1-22A (Algo) Product versus SG&A costs LO 1-3 The following transactions pertain to year 1, the first-year operations of Adams Company. All inventory was started and completed during year 1. Assume that all transactions are cash transactions. 1. Acquired $4,100 cash by issuing common stock 2. Paid $680 for materials used to produce inventory 3. Paid $1,840 to production workers. 4. Paid $1,332 rental fee for production equipment. 5. Paid $110 to administrative employees. 6. Paid $112 rental fee for administrative office equipment 7. Produced 360 units of inventory of which 250 units were sold at a price of $13 each. Required Prepare an income statement and a balance sheet in accordance with GAAP. Required Prepare an income statement and a balance sheet in accordance with GAAP Complete this question by entering your answer in the tabs below. Income Statement Balance Sheet Prepare an income statement in accordance with GAAP. (Do not round your intermediate calculations.) ADAMS COMPANY Income Statement for Your 1 $ 0 $ 0 Balance Sheet > Check my world Income Statement Balance Sheet Prepare a balance sheet in accordance with GAAP. (Do not round your intermediate calculations.) ADAMS COMPANY Balance Shoot as of 12/31/Year 1 Assets Total assets Equity 0 Total equity (Income Statement