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 $4,700 cash by issuing common stock. 2. Paid $680 for materials used to produce inventory 3. Paid $1,970 to production workers. 4. Paid $920 rental fee for production equipment. 5. Paid $100 to administrative employees. 6. Paid $107 rental fee for administrative office equipment. 7. Produced 340 units of inventory of which 260 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