The following transactions pertain to year $1,$ the first$-$year operations of Thornton Company. All inventory was started and completed during year $1.$ Assume that all transactions are cash transactions.

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

Paid $$640$ for materials used to produce inventory.

Paid $$1,820$ to production workers.

Paid $$1,012$ rental fee for production equipment.

Paid $$110$ to administrative employees.

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

Produced $310$ units of inventory of which $220$ units were sold at a price of $$13$ each.

Required

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

Complete this question by entering your answer in the tabs below.

Income Statement

Balance Sheet

Prepare an income statement in accordance with GAAP.

Note: Do not round intermediate calculations. Indicate amounts to be deducted with a minus sign.

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