On December 1, 2017, Prosen Distributing Company had the following account balances.

		Debit				Credit
Cash		$7,500		Accumulated DepreciationEquipment		$2,640
Accounts Receivable		4,600		Accounts Payable		4,900
Inventory		12,400		Salaries and Wages Payable		1,000
Supplies		1,400		Common Stock		30,000
Equipment		26,400		Retained Earnings		13,760
		$52,300				$52,300

During December, the company completed the following summary transactions.

Dec. 6

Paid $1,800 for salaries and wages due employees, of which $800 is for December and $1,000 is for November salaries and wages payable.

8

Received $1,900 cash from customers in payment of account (no discount allowed).

10

Sold merchandise for cash $6,800. The cost of the merchandise sold was $4,200.

13

Purchased merchandise on account from Maglio Co. $8,900, terms 2/10, n/30.

15

Purchased supplies for cash $1,800.

18

Sold merchandise on account $12,600, terms 3/10, n/30. The cost of the merchandise sold was $8,200.

20

Paid salaries and wages $1,500.

23

Paid Maglio Co. in full, less discount.

Adjustment data:

1.		Accrued salaries and wages payable $700.
2.		Depreciation $240 per month.
3.		Supplies on hand $1,700. e-Prepare an income statement.

27 Received collections in full, less discounts, from customers billed on December 18.