Presented here are the accounts of Hometown Decor Company for the year ended December 31, 2018.

Land $13,000, Notes Payable $33,000, Property Tax Expense $2,800, Dividends $36,000, Rent Expense $14,000, Salaries Expense $67,000, Salaries Payable $1,300, Service Revenue $225,000, Office Supplies $8,000, Retained Earnings, Dec. 31 2017 $56,000, Common Stock $28,000, Accounts Payable $14,000, Accounts Receivable $800, Advertising Expense $17,000, Building $170,400, Cash $2,800, Equipment, $17,000, Insurance Expense $1,700, Interest Expense $6,800.

Requirement 1. Prepare Hometown Decor Company's income statement.

Requirement 2. Prepare the statement of retained earnings.

Requirement 3. Prepare the balance sheet.