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Question: the following transactions pertain to 2018 the firstyear operations of...

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The following transactions pertain to 2018, the first-year operations of Fanning Company. All inventory was started and completed during 2018. Assume that all transactions are cash transactions.

1. Acquired $4,200 cash by issuing common stock.

2. Paid $710 for materials used to produce inventory.

3. Paid $1,970 to production workers.

4. Paid $792 rental fee for production equipment.

5. Paid $90 to administrative employees.

6. Paid $120 rental fee for administrative office equipment.

7. Produced 310 units of inventory of which 200 units were sold at a price of $14 each.

Required Prepare an income statement and a balance sheet in accordance with GAAP.

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