Problem: Gibson Company started year 1 with $180,000 in its cash and common stock accounts. During year 1, Gibson paid $135,000 cash for employee compensation and $41,400 cash for materials. Required Determine the total amount of assets and the amount of expense shown on the year 1 financial statements assuming Gibson used the labor and materials to make 1,500 chairs. Further, assume that Gibson sold 1,200 of the chairs it made. State the name of the expense account(s) shown on the income statement. Determine the total amount of assets and the amount of expense shown on the year 1 financial statements assuming Gibson used the labor and materials to provide dental cleaning services to 500 patients. State the name of the expense account(s) shown on the income statement.