The following transactions pertain to year 1, the first-year operations of Gibson Company. All inventory was started and completed during year 1. Assume that all transactions are cash transactions.
a. Acquired $12,000 cash by issuing common stock.
b. Paid $4,700 for materials used to produce inventory.
c. Paid $2,400 to production workers.
d. Paid $900 rental fee for production equipment.
e. Paid $350 to administrative employees.
f. Paid $400 rental fee for administrative office equipment.
g. Produced 400 units of inventory of which 360 units were sold at a price of $25 each.
Required1. Prepare an income statement and a balance sheet in accordance with GAAP.

Verizon communications, inc., provides the following footnote relating to its leasing activities in its 10-k report. the aggregate minimum rental commitments under noncancelable leases for the periods shown at december 31, 2010, are as follows: years (dollars in millions) capital leases operatingleases 2011 $97 $1,898 2012 74 1,720 2013 70 1,471 2014 54 1,255 2015 42 1,012 thereafter 81 5,277 total minimum 418 $ 12,633 rental commitments less interest and (86) executory costs present value of 332 minimum lease payments less current (75) installments long-term obligation $257 at december 31, 2010 (a) confirm that verizon capitalized its capital leases using a rate of 7.4 %. (b) compute the present value of verizon's operating leases, assuming an 7.4% discount rate and rounding the remaining lease term to 3 decimal places. (use a financial calculator or excel to compute. do not round until your final answers. round each answer to the nearest whole number.)