The following transactions pertain to 2018, the first-year operations of Franklin Company. All inventory was started and completed during 2018. Assume that all transactions are cash transactions.

1. Acquired $4,700 cash by issuing common stock.

2. Paid $650 for materials used to produce inventory.

3. Paid $1,820 to production workers.

4. Paid $922 rental fee for production equipment.

5. Paid $120 to administrative employees.

6. Paid $115 rental fee for administrative office equipment.

7. Produced 320 units of inventory of which 240 units were sold at a price of $13 each.

Prepare an income statement and a balance sheet in accordance ith GAAP. (fill in where an X is )

FRANKLIN COMPANY
Income Statement for 2018
Sales Revenue	X
Cost of Goods Sold	X
Gross Margin	X
Adminstrative Expense	X
Net Income	X

FRANKLIN COMPANY
Balance Sheet as of 12/31/2018
Assets
Cash	X
Finished Goods Inventory	X
Total assets	X
Equity
Common Stock	X
Retained Earnings	X
Total equity	X