Use the following data to prepare basic financial statements (income statement, statement of retained earnings, and the balance sheet) for Monterey Company for the fiscal year ended June 30, 2020. Do not prepare a statement of cash flows.

Sales	662,000
Cost of goods sold	560,000
Equipment	150,000
Bonds Payable	84,000
Salaries expense	46,000
Common stock	40,000
Inventory	35,000
Accounts payable	35,000
Accumulated Depreciation- balance at June 30, 2020	24,000
Accounts receivable	22,000
Retained Earnings - balance at July 1, 2019	19,000
Dividends declared and paid	18,000
Cash and cash equivalents	17,000
Income tax expense	16,000
Income tax payable	12,000
Depreciation expense	8,000
Accrued liabilities	7,000
Prepaid rent	5,000
Utilities expense	4,000
Rent expense	2,000