The following transactions pertain to 2018, the first year of operations of Fuzhou Company. All inventory was started and completed during the accounting period. All transactions were cash transactions.
1. Acquired $50,000 of contributed capital from its owners.
2. Paid $10,500 for materials used to produce inventory.
3. Paid $8,600 to production workers.
4. Paid $4,900 rental fee for production equipment.
5. Paid $2,100 to administrative employees.
6. Paid $2,900 rental fee for administrative office equipment.
7. Produced 1,200 units of inventory of which 1,100 units were sold at a price of $27 each.
Required
Prepare an income statement and a balance sheet. Assume the statements are prepared in accordance with GAAP.