Requirement 1. Prepare Modern's income statement for the year ended December 31, 2018. Use the single-step format, with all revenues listed together and all expenses together. Modern Motors, Inc. Income Statement Year Ended December 31, 2018 More Info Revenue: Expenses: Requirement 2. Prepare Modern's balance sheet at December 31, 2018. Modern Motors, Inc. Balance Sheet December 31, 2018 On January 1, 2018, Modem issued its common stock for $510,000. Early in January. Modern made the following cash payments: a. $220,000 for equipment b. $243,000 for inventory (nine cars at $27,000 each) c. $25,000 for 2018 rent on a store building In February, Modern purchased three cars for inventory on account. Cost of this inventory was $117,000 ($39,000 each). Before year-end, the company paid off $81,900 of this debt. The company uses the first-in, first-out (FIFO) method to account for its inventory. During 2018, Modern sold eleven autos for a total of $649,000. Before year-end, it had collected 50% of this amount. The business employs two people. The combined annual payroll is $151,000, of which Modern owes $3,000 at year-end. At the end of the year, the company paid income taxes of $22,000. Late in 2018, Modern declared and paid cash dividends of $19,000. For equipment, Modern uses the straight-line depreciation method, over five years, with zero residual value. Print Done