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

Service revenue	$ 74,000	Rent expense	$ 16,600
Postage expense	1,400	Salaries expense	22,000
Legal fees expense	2,400	Supplies expense	16,000

In addition, the balance of common stock at the beginning of the year was $165,000, and the balance of retained earnings was $32,000. During the year, the company issued additional shares of common stock for $26,000 and paid dividends of $16,000.

Required:

Prepare an income statement.

Prepare a statement of stockholders equity.