The following transactions pertain to year 1 , the first-year operations of Fanning Company. All inventory was started and completed during year 1. Assume that all transactions are cash transactions. 1. Acquired $4,500 cash by issuing common stock. 2. Paid $650 for materials used to produce inventory. 3. Paid $1,910 to production workers. 4. Paid $1,399 rental fee for production equipment. 5. Paid $120 to administrative employees. 6. Paid $116 rental fee for administrative office equipment. 7. Produced 370 units of inventory of which 310 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. Prepare an income statement in accordance with GAAP. Note: Do not round intermediate calculations. Indicate amounts to be deducted with a minus sign