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.

Match the terms with their correct definition. terms: 1. accounts receivable 2. other receivables 3 debtor 4. notes receivable 5. maturity date 6. creditor definitions: a. the party to a credit transaction who takes on an obligation/payable. b. the party who receives a receivable and will collect cash in the future. c. a written promise to pay a specified amount of money at a particular future date. d. the date when the note receivable is due. e. a miscellaneous category that includes any other type of receivable where there is a right to receive cash in the future. f. the right to receive cash in the future from customers for goods sold or for services performed.