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.

1. Acquired $4,300 cash by issuing common stock.

2. Paid $670 for materials used to produce inventory.

3. Paid $1,970 to production workers.

4. Paid $1,760 rental fee for production equipment.

5. Paid $120 to administrative employees.

6. Paid $104 rental fee for administrative office equipment.

7. Produced 400 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

3. Paid $1,970 to production workers. 4. Paid $1,760 rental fee for production equipment 5. Paid $120 to administrative employees. 6. Paid $104 rental fee for administrative office equipment 7. Produced 400 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. 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.) RUNDLE COMPANY Income Statement for Year 1 Sales revenue Cost of goods sold Gross margin Administrative expense 0 (120) $ 0 120 Net income $ 3. Paid $1,970 to production workers. 4. Paid $1,760 rental fee for production equipment. 5. Paid $120 to administrative employees. 6. Paid $104 rental fee for administrative office equipment. 7. Produced 400 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. 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.) RUNDLE COMPANY Balance Sheet as of 12/31/41 Assets Cash Finished goods inventory $ Total assets Equity Retained earnings $ 3,316 Common stock $ 3,316 0 0 $ 3,316 4,300 0 $ Total equity $ 7,616