Performance Corporation was organized on January 1, 2015. At the end of 2015, the company had not yet employed an accountant; however, an employee who was good with numbers prepared the following statements at that date:

PERFORMANCE CORPORATION
December 31, 2015
Income from sales of merchandise	$	180,000
Total amount paid for goods sold during 2015		(90,000	)
Selling costs		(25,000	)
Depreciation (on service vehicles used)		(12,000	)
Income from services rendered		52,000
Salaries and wages paid		(62,000	)

PERFORMANCE CORPORATION
December 31, 2015
Resources
Cash				$	32,000
Merchandise inventory (held for resale)					42,000
Service vehicles					50,000
Retained earnings (profit earned in 2015)					32,250
Grand total				$	156,250
Debts
Payables to suppliers					17,750
Note owed to bank					25,000
Due from customers					13,000
Total				$	55,750
Supplies on hand (to be used in rendering services)	$	15,000
Accumulated depreciation (on service vehicles)*		12,000
Common stock, 6,500 shares		65,000
Total					92,000
Grand total				$	147,750

* Accumulated depreciation represents the used portion of the asset and should be subtracted from the asset's balance.

Required:

2-a. Prepare a proper income statement (correct net income is $32,250 and income tax expense is $10,750).

2-b. Balance sheet (correct total assets are $140,000). (Amounts to be deducted should be indicated by a minus sign.)

Thank you so much in advance!!

PERFORMANCE CORPORATION Income Statement Revenues: Total revenues $ 0 Expenses: Total expenses $ 0 Pretax income $ 0 PERFORMANCE CORPORATION Balance Sheet 0 $ 0 0 0 $ 0