The following transactions pertain to Year 1, the first-year operations of Benson Company. All inventory was started and completed during Year 1. Assume that all transactions are cash transactions.

1. Acquired $4,400 cash by issuing common stock.

2. Paid $620 for materials used to produce inventory.

3. Paid $1,870 to production workers.

4. Paid $966 rental fee for production equipment.

5. Paid $110 to administrative employees.

6. Paid $119 rental fee for administrative office equipment.

7. Produced 320 units of inventory of which 200 units were sold at a price of $13 each.

Required

Prepare an income statement and a balance sheet in accordance with GAAP.

Income Statement Balance Sheet Prepare an income statement. (Do not round your intermediate calculations.) BENSON COMPANY Income Statement for Year 1 $ 0 A 0 Income Statement Balance Sheet Prepare a balance sheet. (Do not round your intermediate calculations.) BENSON COMPANY Balance Sheet as of 12/31/1 Assets $ 0 Total assets Equity Total equity $ 0