Presented here are the accounts of Hometown Décor Company for the year ended December 31, 2018.

Requirements
1. Prepare Hometown Décor Company's income statement.
2. Prepare the statement of retained earnings.
3. Prepare the balance sheet.

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$ 28,000 $ 13,000 Common Stock Land Notes Payable 33,000 Accounts Payable 14,000 2,800 Accounts Receivable Property Tax Expense 800 Dividends 36,000 Advertising Expense 17,000 14,000 Building Rent Expense 170,400 Salaries Expense 67,000 Cash 2,800 Salaries Payable 1,300 Equipment 17,000 225,000 Insurance Expense Service Revenue 1,700 Office Supplies 8,000 Interest Expense 6,800 Retained Earnings, Dec. 31, 2017 56,000