Rundle 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.

Acquired $$870,000$ of cash from the owners.

Purchased $$330,000$ of manufacturing equipment. The equipment has a $$42,000$ salvage value and a four$-$year useful life.

The company started and completed $6,200$ modems. Direct materials purchased and used amounted to $$52$ per unit.

Direct labor costs amounted to $$37$ per unit.

The cost of manufacturing supplies amounted to $$16$ per unit.

The company paid $$62,000$ to rent the manufacturing facility.

Rundle sold all $6,200$ units at a cash price of $$180$ per unit. $($Hint: It will be necessary to determine the manufacturing costs in order to record the cost of goods sold.$)$

The sales staff was paid a $$12\mathrm{.}00$ per unit sales commission.

Paid $$51,000$ to purchase equipment for administrative offices. The equipment was expected to have a $$4,200$ salvage value and a three$-$year useful life.

Administrative expenses consisting of office rental and salaries amounted to $$77,950.$

Required

a$.$ Record the transaction data for Rundle 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.