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

1. Acquired $4,100 cash by issuing common stock.

2. Paid $630 for materials used to produce inventory.

3. Paid $1,860 to production workers.

4. Paid $1,185 rental fee for production equipment.

5. Paid $140 to administrative employees.

6. Paid $116 rental fee for administrative office equipment.

7. Produced 350 units of inventory of which 230 units were sold at a price of $13 each.

Required

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

• Income Statement
• Balance Sheet

Prepare an income statement. (Do not round your intermediate calculations.)

ROONEY COMPANY
Income Statement for 2018
Sales revenue
Cost of goods sold
Gross margin	$0
Administrative expense
Net income	$0

• alance Sheet

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

ROONEY COMPANY
Balance Sheet as of 12/31/2018
Assets
Cash	not attempted
Finished goods inventory	not attempted
not attempted	not attempted
Total assets	$0
Equity
not attempted	not attempted
Retained earnings	not attempted
Common stock	not attempted
Total equity	$0