The following transactions pertain to year 1, the first-year operations of Adams Company. All inventory was started and completed during year 1. Assume that all transactions are cash transactions. a. Acquired $4,800 cash by issuing common stock.
b. Paid $670 for materials used to produce inventory.
c. Paid $1,870 to production workers.
d. Paid $1,098 rental fee for production equipment.
e. Paid $140 to administrative employees.
f. Paid $117 rental fee for administrative office equipment.
g. Produced 340 units of inventory of which 270 units were sold at a price of $13 each.

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

Christopher kim, cfa, is a banker with batts brothers, an investment banking firm. kim follows the energy industry and has frequent contact with industry executives. kim is contacted by the ceo of a large oil and gas corporation who wants batts brothers to underwrite a secondary offering of the company's stock. the ceo offers kim the opportunity to fly on his private jet to his ranch in texas for an exotic game hunting expedition if kim's firm can complete the underwriting within 90 days. according to cfa institute standards of conduct, kim: a) may accept the offer as long as he discloses the offer to batts brothers.b) may not accept the offer because it is considered lavish entertainment.c) must obtain written consent from batts brothers before accepting the offer.