Delta Electronics began operations on January 1, Year 1. During the first year, the company had the following transactions:

Transaction #	Date	Transaction Description	Amount
1	Jan 1, Y1	Issued common stock for cash	$80,000
2	Feb 15, Y1	Purchased raw materials on account	$12,000
3	Mar 10, Y1	Paid cash for labor used in production	$25,000
4	Apr 5, Y1	Paid cash for factory overhead	$18,000
5	May 20, Y1	Transferred raw materials to production	$10,000
6	Jun 30, Y1	Completed work on products (cost to make: $50,000)	-
7	Jul 25, Y1	Sold products costing $45,000 for cash	$70,000
8	Dec 15, Y1	Paid cash dividends to shareholders	$5,000

Required:

1. Prepare the journal entries for each of the transactions.
2. Prepare the income statement for the year ended December 31, Year 1.