The following accounting events affected Rundle Manufacturing Company during its first three years of operation. Assume that alltransactions are cash transactions.Transactions for Year 11. Started manufacturing company by Issuing common stock for $3,000.2. Purchased $1,280 of direct raw materials.3. Used $790 of direct raw materials to produce Inventory.4. Paid $360 of direct labor wages to employees to make Inventory.5. Applied $290 of manufacturing overhead cost to Work In Process Inventory.6. Finished work on Inventory that cost $960.7. Sold goods that cost $610 for $1,180.8. Pald $310 for selling and administrative expenses.9. Actual manufacturing overhead cost amounted to $213 for the year.Transactions for Year 21. Acquired additional $1,600 of cash from common stock.2. Purchased $1,210 of direct raw materials.3. Used $1,260 of direct raw materials to produce Inventory.4. Pald $600 of direct labor wages to employees to make Inventory.5. Applied $300 of manufacturing overhead cost to Work In Process Inventory.6. Finished work on Inventory that cost $1,900.7. Sold goods that cost $1,510 for $2,840.8. Pald $420 for selling and administrative expenses.9. Actual manufacturing overhead cost amounted to $350 for the year.Transactions for Year 31. Pald a cash dividend of $700.2. Purchased $1,430 of direct raw materials.3. Used $1,140 of direct raw materials to produce Inventory.4. Paid $430 of direct labor wages to employees to make Inventory.5. Applied $290 of manufacturing overhead cost to work in process.6. Finished work on Inventory that cost $2,070.7. Sold goods that cost $2,200 for $3,590.8. Pald $700 for selling and administrative expenses.9. Annual manufacturing overhead costs were $270 for the year.Requireda.c.&d. Record the preceding events in horizontal statements models for each of the three years. Close overapplied or underappliedoverhead to Cost of Goods Sold. In Year 1, the first event is shown as an example.b.&d. Prepare a schedule of cost of goods manufactured and sold, an Income statement, and a balance sheet as of the close ofbusiness on December 31, Year 1, Year 2 and Year 3.Complete this question by entering your answers in the tabs below.Year 1HorizontalYear 2HorizontalYear 3HorizontalCost of GoodsScheduleFinancialStatements

Income statement:An income statement stands for the statement that shows profits and loss of the firm, its revenue and earnings statements, and statement of financial performance. It includes revenues and expenses of the firm which is a result of the firm's net income and loss of the firm over a period of time. An income statement differs from the balance sheet in a way that the former reports about firm's revenues and expenses constituting to net profit or loss of the firm; while the latter reports about the firm's assets, liabilities, and owner's equity in the firm.Balance sheet:Balance sheet stands for the statement and information that shows the assets and liabilities of the firm and represents the capital of the firm at a specific period of time. This is used as a detail that shows the balance of firm's income and expenditure for the past year's business performance. Balance sheet represents the financial situation of a firm providing for the summary of the firm's financial balances. Balance sheet shows the firm's total assets and the financing of these assets either through debt or equity.Year 1:Year 2:Year 3:Note:For all the three years, the last entry CL is used to close the manufacturing overhead account and make the balance zero. Cost of goods manufactured and cost of goods sold:Income statement and Balance sheet:(a, c & d) Horizontal model for each year was prepared above.(b & d) Preparation of schedules: