The following transactions pertain to Year 1, the first-year operations of Thornton Company. All inventory was started and completed during Year 1. Assume that all transactions are cash transactions. 1. Acquired $4,900 cash by issuing common stock. 2. Paid $690 for materials used to produce inventory. 3. Paid $1,810 to production workers. 4. Paid $1,790 rental fee for production equipment. 5. Paid $120 to administrative employees. 6. Paid $119 rental fee for administrative office equipment. 7. Produced 390 units of inventory of which 300 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.) THORNTON COMPANY Income Statement for Year 1 Sales revenue Cost of goods sold Gross margin $ Administrative expense 0 0 Net income $ 0 Income Statement Balance Sheet Prepare a balance sheet. (Do not round your intermediate calculations.) THORNTON COMPANY Balance Sheet as of 12/31/Y1 Assets Cash Finished goods inventory $ $ 0 Total assets Equity Common stock Retained earnings Total equity $ 0