Martin Company had the following transactions during its first month of operations:

June 1 The company received cash of $35,000 and issued common stock to the shareholders.

2 Borrowed $20,000 from the bank and signed a long-term note payable.

8 Purchased equipment with a short-term note payable for $10,000.

9 Performed services billed at $3,000 and received cash of $3,000.

10 Performed services for a client on account, $6,500.

12 Employees worked two weeks and were paid salaries of $1,000.

15 Paid the short-term note payable from the June 8 purchase.

22 Purchased office supplies on account for $7,000.

30 Paid amount due for office supplies.

30 Paid June's monthly rent of $500.

30 Paid the monthly income taxes of $2,200.

30 The Board of Directors declared and paid dividends of $1,000.

Required:

1. Prepare a single-step income statement for the first month of operations. Include a proper heading.

2. Prepare a statement of retained earnings for the first month of operations. Include a proper heading.

3 . Prepare the balance sheet with proper heading