The following information relates to Karen Weigel Co. for the year 2014.

Retained earnings, January 1, 2014 $48,000 Advertising expense $ 1,800 Dividends during 2014 5,000 Rent expense 10,400 Service revenue 62,500 Utilities expense 3,100 Salaries and wages expense 28,000 Instructions After analyzing the data, prepare an income statement and a retained earnings statement for the year ending December 31, 2014.