The following transactions pertain to 2015, the first-year operations of Bailey Company. All inventory was started and completed during 2015. Assume that all transactions are cash transactions.
1. Acquired $4,700 cash by issuing common stock.
2. Paid $650 for materials used to produce inventory.
3. Paid $1,860 to production workers.
4. Paid $1,054 rental fee for production equipment.
5. Paid $140 to administrative employees.
6. Paid $110 rental fee for administrative office equipment.
7. Produced 330 units of inventory of which 220 units were sold at a price of $13 each.
Prepare and income and balance sheet.