Sigma Pharmaceuticals began operations on January 1, Year 1. Below are the transactions for the first year:

Transaction #	Date	Transaction Description	Amount
1	Jan 1, Y1	Issued common stock for cash	$120,000
2	Jan 10, Y1	Purchased laboratory equipment for cash	$35,000
3	Feb 5, Y1	Paid cash for research and development expenses	$25,000
4	Mar 15, Y1	Purchased raw materials on account	$18,000
5	Apr 20, Y1	Paid cash for employee salaries	$40,000
6	May 25, Y1	Transferred raw materials to production	$16,000
7	Jul 30, Y1	Completed production of pharmaceutical products	$70,000
8	Nov 15, Y1	Sold pharmaceutical products on account (cost: $60,000)	$95,000

Required:

1. Record the transactions in the general journal.
2. Prepare the year-end adjusting entries.
3. Prepare the income statement for the year ended December 31, Year 1.