• Tesla Manufacturing Company started operations on January 1, Year 1. During Year 1, the company engaged in the following transactions.
  1. Issued common stock for $200,000.
  2. Paid $80,000 cash to purchase raw materials used to make products.
  3. Transferred $70,000 of raw materials to the production department.
  4. Paid $100,000 cash for labor used to make products.
  5. Paid $110,000 cash for overhead costs (assume actual and estimated overhead are the same).
  6. Finished work on products that cost $230,000 to make.
  7. Sold products that cost $200,000 to make for $300,000 cash.

• Required:
  1. Prepare the December 31, Year 1, balance sheet.
  2. Prepare the December 31, Year 1, income statement.