The following transactions pertain to 2012, the first-year operations of Hall Company. All inventory was started and completed during 2012. Assume that all transactions are cash transactions.

1. Acquired $4,000 cash by issuing common stock.

2. Paid $720 for materials used to produce inventory.

3. Paid $1,800 to production workers.

4. Paid $540 rental fee for production equipment.

5. Paid $180 to administrative employees.

6. Paid $144 rental fee for administrative office equipment.

7. Produced 300 units of inventory of which 200 units were sold at a price of $12 each.

Required

Prepare an income statement and a balance sheet.