ABC, Inc. has the following assets, liabilities, revenues and expenses for the current year.

The company has a 12/31/X7 year end.
Equipment $45,000 Rent expense $24,000
Salary expense 68,000 Cash 10,000
Land 18,000 Service revenue 125,000
Note payable 30,000 Supplies expense 4,000
Interest payable 500 Building 100,000
Interest expense 2,000 Supplies 1,500
Accounts receivable 14,500 Common stock 21,000
Accounts payable 19,500 Utilities expense 12,000
Beginning retained earnings was $106,000 and dividends were $3,000 for the year.

Prepare the Income Statement and Statement of Retained Earnings for ABC, Inc. for the current year.