These items are taken from the financial statements of Dragons Ltd. at December 2021:

Accounts payable	$ 21,050	Income tax expense	$ 5,200
Accounts receivable	20,780	Interest expense	4,550
Accumulated depreciation-		Interest payable	2,100
buildings	50,600	Land	194,000
Accumulated depreciation-		Long-term investments	28,970
equipment	21,470	Mortgage payable	104,000
Buildings	133,800	Operating expenses	158,680
Cash	24,040	Prepaid insurance	1,420
Common shares	140,000	Retained earnings, January 1	116,520
Equipment	66,100	Service revenue	183,040
		Supplies	1,240

Required:

1. Calculate net income and the ending balance of retained earnings at December 31, 2021. It is necessary to make a formal statement of income or statement of changes in equity.

1. Prepare a statement of financial position. Assume that the company will pay $30,500 of the mortgage payable in 2022.