The following accounts and balances are taken from Madrid Company's adjusted trial balance for the year ended December 31, 2020:

Accounts Payable	$11,000
Accounts Receivable	4,000
Accumulated Depreciation	1,500
Depreciation Expense	1,500
Dividends	2,500
Insurance Expense	2,300
Interest Revenue	1,340
Prepaid Insurance	2,320
Retained Earnings	11,500
Salary Expense	24,100
Service Revenue	37,800

Required:

1. Prepare Madrid's income statement for the year ended December 31, 2020. (9 marks)

B. Prepare Madrid 's statement of changes in equity for the year ended December 31, 2020. (6 marks)