The following transactions pertain to 2012, the first year of operations of Jardine Company. All inventory was started and completed during the accounting period. All transactions were cash transactions.

1. Acquired $56,000 of contributed capital from its owners.

2. Paid $9,600 for materials used to produce inventory.

3. Paid $4,400 to production workers.

4. Paid $5,000 rental fee for production equipment.

5. Paid $1,500 to administrative employees.

6. Paid $3,200 rental fee for administrative office equipment.

7. Produced 1,900 units of inventory of which 1,500 units were sold at a price of $17.40 each.

Required

Prepare an income statement and a balance sheet.