On December 31, 2024, Fighting Rachel Cooking Services reports the following revenues and expenses.

Service revenue	$ 89,000	Rent expense	$ 12,000
Postage expense	2,200	Salaries expense	38,000
Legal fees expense	3,100	Supplies expense	21,500

In addition, the balance of common stock at the beginning of the year was $900,000, and the balance of retained earnings was $60,000. During the year, the company issued additional shares of common stock for $39,000 and paid dividends of $38,000.

Required:

1. Prepare an income statement.
2. Prepare a statement of stockholders' equity.