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

Acquired $4,300 cash by issuing common stock.

Paid $690 for materials used to produce inventory.

Paid $1,960 to production workers.

Paid $1,346 rental fee for production equipment.

Paid $80 to administrative employees.

Paid $111 rental fee for administrative office equipment.

Produced 360 units of inventory of which 280 units were sold at a price of $13 each.

Required

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

Prepare an income statement. (Do not round your in Prepare a balance sheet. (Do not round your intermediate