The following transactions pertain to 2015, the first-year operations of Bailey Company. All inventory was started and completed during 2015. Assume that all transactions are cash transactions. 1. Acquired $5,000 cash by issuing common stock. 2. Paid $710 for materials used to produce inventory. 3. Paid $1, 970 to production workers. 4. Paid $761 rental fee for production equipment. 5. Paid $90 to administrative employees. 6. Paid $110 rental fee for administrative office equipment. 7. Produced 310 units of inventory of which 250 units were sold at a price of $13 each. a-1. Prepare an income statement. (Do not round intermediate calculations.)