franklin modems, incorporated, makes modem cards that are used in notebook computers. the company completed the following transactions during year 1. all purchases and sales were made with cash. acquired $820,000 of cash from the owners. purchased $305,000 of manufacturing equipment. the equipment has a $37,000 salvage value and a four-year useful life. the company started and completed 5,700 modems. direct materials purchased and used amounted to $47 per unit. direct labor costs amounted to $32 per unit. the cost of manufacturing supplies amounted to $11 per unit. the company paid $57,000 to rent the manufacturing facility. franklin sold all 5,700 units at a cash price of $155 per unit. (hint: it will be necessary to determine the manufacturing costs in order to record the cost of goods sold.) the sales staff was paid a $9.50 per unit sales commission. paid $46,000 to purchase equipment for administrative offices. the equipment was expected to have a $3,700 salvage value and a three-year useful life. administrative expenses consisting of office rental and salaries amounted to $75,450. required a. record the transaction data for franklin modems, incorporated, in the financial statements. the first transaction is recorded as an example. b-1. prepare an income statement. b-2. prepare a balance sheet.