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

Acquired $4,000 cash by issuing common stock.

Paid $690 for materials used to produce inventory.

Paid $2,000 to production workers.

Paid $880 rental fee for production equipment.

Paid $120 to administrative employees.

Paid $117 rental fee for administrative office equipment.

Produced 350 units of inventory of which 300 units were sold at a price of $13 each.

Required Prepare an income statement and a balance sheet in accordance with GAAP.