The following selected accounts and their current balances appear in the ledger of Jans Dance Studio, Inc. for the fiscal year ended December 31, 2015.

Cash $171,100

Accounts receivable 9,400

Prepaid studio rent 3,000

Unexpired insurance 7,200

Supplies 500

Equipment 18,000

Accumulated depreciation: equipment 7,200

Notes payable 10,000

Accounts payable 3,200

Salaries payable 4,000

Income taxes payable 6,000

Unearned studio revenue 8,800

Capital stock 100,000

Retained earnings at January 1, 2015 40,000

Dividends 6,000

Studio revenue earned 165,000

Salary expense 85,000

Supply expense 3,900

Rent expense 12,000

Insurance expense 1,900

Advertising expense 500

Depreciation expense: equipment 1,800

Interest expense 900

Income taxes expense 23,000

Prepare an Income Statement and Statement of Retained Earnings for the year ended December 31, 2015. Also, prepare the studios Balance Sheet dated December 31, 2015. Prepare each statement paying attention to headings and formatting, including proper indenting, subtotals and underlining.