Kasey Manufacturing Company started operations on January 1 2015 During
Kasey Manufacturing Company started operations on January 1, 2015. During 2015, the company engaged in the following transactions.
1. Issued common stock for $95,000.
2. Paid $33,000 cash to purchase raw materials used to make products.
3. Transferred $30,000 of raw materials to the production department.
4. Paid $34,000 cash for labor used to make products.
5. Paid $26,000 cash for overhead costs (assume actual and estimated overhead are the same).
6. Finished work on products that cost $86,000 to make.
7. Sold products that cost $72,000 to make for $91,000 cash.

Required
a. Prepare the December 31, 2015, balance sheet.
b. Prepare the December 31, 2015, income statement.

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