The following information applies to the questions displayed below.]

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.

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

Walton is a manufacturing company. The $38,100 was paid to purchase the following items:

(1) Paid $3,500 cash to purchase materials that were used to make products during the year.

(2) Paid $3,580 cash for wages of factory workers who made products during the year.

(3) Paid $12,020 cash for salaries of sales and administrative employees.

(4) Paid $19,000 cash to purchase manufacturing equipment. The equipment was used solely to make products. It had a four-year life and a $2,200 salvage value. The company uses straight-line depreciation.

(5) During year 1, Lang started and completed 2,400 units of product. The revenue was earned when Lang sold 2,050 units of product to its customers.

Prepare a balance sheet. (Amounts to be deducted should be indicated with a minus sign.)

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