Required information

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Walton Company began operations on January 1, year 1, by issuing common stock for $36,000 cash. During year 1, Walton received $52,100 cash from revenue and incurred costs that required $38,100 of cash payments.

Required

Prepare a GAAP-based income statement and balance sheet for Walton Company for year 1, for the below scenario:

a)Walton is a promoter of rock concerts. The $38,100 was paid to provide a rock concert that produced the revenue.

Balance Sheet as of 12/31/Year 1 Assets Total assets Equity Total equity WALTON COMPANY Income Statement for Year 1