! Required information Problem 1-24A (Algo) Service versus manufacturing companies LO 1-4 [The following information applies to the questions displayed below.] Solomon Company began operations on January 1, year 1, by issuing common stock for $36,000 cash. During year 1, Solomon received $53,700 cash from revenue and incurred costs that required $38,700 of cash payments. Problem 1-24A (Algo) Part c Prepare a GAAP-based income statement and balance sheet for Solomon Company for year 1, for the below scenario: c. Solomon is a manufacturing company. The $38,700 was paid to purchase the following items: (1) Paid $3,300 cash to purchase materials that were used to make products during the year. (2) Paid $4,400 cash for wages of factory workers who made products during the year. (3) Paid $11,300 cash for salaries of sales and administrative employees. (4) Paid $19,700 cash to purchase manufacturing equipment. The equipment was used solely to make products. It had a four-year life and a $2,500 salvage value. The company uses straight-line depreciation. (5) During year 1, Lang started and completed 2,500 units of product. The revenue was earned when Lang sold 2,100 units of product to its customers. Complete this question by entering your answer in the tabs below. Income Statement Balance Sheet Prepare an Income Statement. SOLOMON COMPANY Income Statement for Year 1 < Income Statement Balance Sheet >