ABC reports the following accounts and balances at December 31, 2017:

Accounts Payable $22,800

Accounts Receivable 18,800

Cash 24,400

Land 82,400

Machine 129,200

Merchandise Inventory 63,600

Long-term Note Payable 79,200

Short-term Note Payable 14,400

Paid-in Capital 200,000

Retained Earnings ?

Sales Revenue 122,000

Cost of Goods Sold 80,000

Operating Expenses 40,000

Required:

Prepare a balance sheet at December 31, 2017 Also, prepare an income statement for the year ended December 31, 2017. Ignore depreciation expense and interest expense.