**Problem 10-26A (Algo) Part b**Prepare a GAAP-based income statement and balance sheet for Baird Company for Year 1, under the following independent scenario:Baird is in the car rental business. The $38,100 was paid to purchase automobiles. The automobiles were purchased on January 1, Year 1, and have a three-year useful life, with no expected salvage value. Baird uses straight-line depreciation. The revenue was generated by leasing the automobiles.**Instructions:**Complete this question by entering your answer in the tabs below.**Income Statement** | **Balance Sheet****Baird Company****Balance Sheet as of 12/31/Y1****Assets:**| | | **Note:** Amounts to be deducted should be indicated with a minus sign (-).(Please calculate the numbers based on the given data to fill out the balance sheet completely.) ### Transcription for Educational Use:---**Baird Company Financial Analysis Exercise**Baird Company began operations on January 1, Year 1, by issuing common stock for $34,000 in cash. During Year 1, Baird received $53,100 in cash from revenue and incurred costs requiring $38,100 in cash payments.**Problem 10-26A (Algo) Part b**Prepare a GAAP-based income statement and balance sheet for Baird Company for Year 1, under the following independent scenario:**b.** Baird is in the car rental business. The amount of $38,100 was paid to purchase automobiles. The automobiles were purchased on January 1, Year 1, and have three-year useful lives with no expected salvage value. Baird uses straight-line depreciation. The revenue was generated by leasing the automobiles.Complete this question by entering your answer in the tabs below.**Income Statement | Balance Sheet**- Prepare an Income Statement.---**Table Explanation:**The image contains a table intended for entering financial data, titled "BAIRD COMPANY Income Statement for Year 1". It provides spaces to enter financial figures relevant to Baird Company's operations, structured to capture typical components of an income statement. The table is currently empty, indicating where users should input their calculations based on provided financial information.---

Income statement and balance sheet are financial statements for a company. The income statement…

Baird Company began operations on January 1, Year 1, by issuing common stock for $34,000 cash. During Year 1, Baird eceived $53,100 cash from revenue and incurred costs that required $38,100 of cash payments. lem 10-26A (Algo) Part b e a GAAP-based income statement and balance sheet for Baird Company for Year 1, under the following independent scen rd is in the car rental business. The $38.100 was paid to purchase automobiles. The automobiles were purchased on Janua

Baird Company began operations on January 1, Year 1, by issuing common stock for $34,000 cash. During Year 1, Baird eceived $53,100 cash from revenue and incurred costs that required $38,100 of cash payments. lem 10-26A (Algo) Part b e a GAAP-based income statement and balance sheet for Baird Company for Year 1, under the following independent scen rd is in the car rental business. The $38.100 was paid to purchase automobiles. The automobiles were purchased on Janua

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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