The following transactions pertain to year 1 , the first-year operations of Zachary Company. All inventory was started and completed during year 1 . Assume that all transactions are cash transactions. 1. Acquired $4,600 cash by issuing common stock. 2. Paid $700 for materials used to produce inventory. 3. Paid $1,840 to production workers. 4. Paid $1,310 rental fee for production equipment. 5. Paid $130 to administrative employees. 6. Paid $107 rental fee for administrative office equipment. 7. Produced 350 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