The following transactions pertain to Year 1, the first-year operations of Adams Company. All inventory was started and completed during Year 1. Assume that all transactions are cash transactions. Acquired $4,600 cash by issuing common stock. Paid $690 for materials used to produce inventory. Paid $1,960 to production workers. Paid $1,562 rental fee for production equipment. Paid $80 to administrative employees. Paid $112 rental fee for administrative office equipment. Produced 390 units of inventory of which 270 units were sold at a price of $13 each. Required Prepare an income statement and a balance sheet in accordance with GAAP.

The following transactions pertain to Year 1, the first-year operations of Adams Company. All inventory was started and completed during Year 1. Assume that all transactions are cash transactions. 1. Acquired $4,600 cash by issuing common stock. 2. Paid $690 for materials used to produce inventory. 3. Paid $1,960 to production workers. 4. Paid $1,562 rental fee for production equipment. 5. Paid $80 to administrative employees. 6. Paid $112 rental fee for administrative office equipment. 7. Produced 390 units of inventory of which 270 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.) ADAMS COMPANY Income Statement for Year 1 Sales revenue Cost of goods sold Gross margin $ Administrative expense 0 Net income $ 0 The following transactions pertain to Year 1, the first-year operations of Adams Company. All inventory was started and completed during Year 1. Assume that all transactions are cash transactions. 1. Acquired $4,600 cash by issuing common stock. 2. Paid $690 for materials used to produce inventory. 3. Paid $1,960 to production workers. 4. Paid $1,562 rental fee for production equipment. 5. Paid $80 to administrative employees. 6. Paid $112 rental fee for administrative office equipment. 7. Produced 390 units of inventory of which 270 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.) ADAMS COMPANY Balance Sheet as of 12/31/Y1 Assets Cash Finished goods inventory $ 0 Total assets Equity Common stock Retained earnings Total equity $ 0