The following transactions pertain to Year 1, the first-year operations of Walton Company. All inventory was started and completed during Year 1. Assume that all transactions are cash transactions. 1. Acquired $4,200 cash by issuing common stock. 2. Paid $670 for materials used to produce inventory. 3. Paid $1,910 to production workers. 4. Paid $1,165 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. Complete this question by entering your answer in the tabs below. Income Statement Balance Sheet Prepare an income statement. (Do not round your Intermediate calculations.) WALTON COMPANY Income Statement for Year 1 Sales revenue $ 2,860 Cost of goods sold 1,760 Gross margin $ 1,100 Administrative expense 237 The following transactions pertain to Year 1, the first-year operations of Walton Company. All inventory was started and completed during Year 1. Assume that all transactions are cash transactions. 1. Acquired $4,200 cash by issuing common stock. 2. Paid $670 for materials used to produce inventory. 3. Paid $1,910 to production workers. 4. Paid $1,165 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. Complete this question by entering your answer in the tabs below. Income Statement Balance Sheet Prepare a balance sheet. (Do not round your intermediate calculations.) WALTON COMPANY Balance Sheet as of 12/31/Y1 Assets Cash Finished goods inventory