The following items are taken from the financial statements of Pelle Ltd. For the year ended December 31, 2022:

...... Accounts payable.......................................................... $31,300

...... Accounts receivable...................................................... 10,000

...... Accumulated depreciationequipment........................ 8,400

...... Bank loan payable........................................................ 34,300

...... Cash.............................................................................. 38,500

...... Common shares (4,375 shares issued)........................ 43,750

...... Depreciation expense................................................... 8,400

...... Dividends declared....................................................... 525

...... Equipment..................................................................... 82,000

...... Goodwill......................................................................... 12,100

...... Income tax expense...................................................... 1,750

...... Interest expense............................................................ 6,125

...... Market price per common share................................... $5.25

...... Rent Expense................................................................ 21,000

...... Retained earnings, beginning....................................... 28,000

...... Salaries expense........................................................... 14,350

...... Service revenue............................................................ 56,875

...... Supplies......................................................................... 7,875

Instructions

(a) Prepare a statement of income and a classified statement of financial position for Pelle for 2022.