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

1. Acquired $4,400 cash by issuing common stock.

2. Paid $690 for materials used to produce inventory.

3. Paid $1,890 to production workers.

4. Paid $1,305 rental fee for production equipment.

5. Paid $80 to administrative employees.

6. Paid $113 rental fee for administrative office equipment.

7. Produced 370 units of inventory of which 320 units were sold at a price of $12 each.

Required

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

SOLOMON COMPANY
Income Statement for 2018
Sales revenue	$3,840
Cost of goods sold
Gross margin	$3,840
Administrative expense
Net income	$3,840

Prepare a balance sheet. (Do not round your intermediate calculations.)

SOLOMON COMPANY
Balance Sheet as of 12/31/2018
Assets
Total assets	$0
Equity
Total equity	$0