Following is balance sheet information for Lynch Services at the end of 2018 and 2017.

a. Prepare balance sheets at December 31 of each year.

b. The firm declared and paid a cash dividend of $10,000 in December 2018. Compute its net income for 2018.

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December 31, December 31, 2018 2017 Accounts payable.... $ 6,000 $ 9,000 20,000 33,000 Cash..... 23,000 Acccunts receivable. Land... 42,000 40,000 40,000 Building. . Equipment Mortgage payable. Supplies... Common stock 250,000 260,000 43,000 45,000 100,000 90,000 20,000 220,000 18,000 220,000 Retained earnings