Prepare a balance sheet and a statement of cash flows
The following transactions pertain to 2015, the first-year operations of Bailey Company. All inventory war stared and completed during 2015. Assume that all transactions are cash transactions. Acquired $5,000 cash by issuing common stock. Paid $710 for materials used to produce inventory. Paid $1, 970 to production workers. Paid $761 rental fee for production equipment. Paid $90 to administrative employees. Paid $110 rental fee for administrative office equipment. Produced 310 units of inventory of which 250 units were sold at a price of $13 each.
