Using the information the information below, prepare Income Statement, Statement of Changes in Equity, and Balance Sheet for Ace Company at December 31, 2018.

Feb 1 Purchased $17,000 of merchandise inventory; terms 1/10, n/30.

Feb 3 Returned defective inventory worth $3,250.

Feb 11 Paid for the merchandise purchased on February 1.

Apr 5 Sold merchandise to a customer for $6,800; terms 1/10, n/30 (cost of sales $4,080).

Apr 8 Sold merchandise for $12,400; terms 1/10, n/30 (cost of sales $7,440).

Apr 15 Collected the amount owing from the credit customer of Apr 5.

May 4 The customer of April 8 paid the balance owing.

PAGE GENERAL JOURNAL ACCR/DESCRIPTION PR DATEN D EBIT CREDIT 01 17.000 Merchandise Inventory Account Payable 17,000 (Purchased inventory on account) 02 03 3,250 Accounts Payable Merchandise inventory (Returned defective inventory to seller) 02 1 1 Account Payable Merchandise Inventory Cash 1,375 | 12,375 04 05 || 6,800 Account Receivable Sales Revenue 6,800 4,080 Cost of goods Sold Merchandise Inventory 4,080 04 OB Account Receivable 12,400 Sales Revenue 12,400 Cost of goods sold Merchandise Inventory 7.440 04 15 Cash Sales discounts Account Receivable 6,800 PAGE DATE/ CREDIT GENERAL JOURNAL ACCR / DESCRIPTION PRO Cash Account Receivable D EBIT 12.400 12.400 PAGE GENERAL JOURNAL ACCR/DESCRIPTION PR DATEN D EBIT CREDIT 01 17.000 Merchandise Inventory Account Payable 17,000 (Purchased inventory on account) 02 03 3,250 Accounts Payable Merchandise inventory (Returned defective inventory to seller) 02 1 1 Account Payable Merchandise Inventory Cash 1,375 | 12,375 04 05 || 6,800 Account Receivable Sales Revenue 6,800 4,080 Cost of goods Sold Merchandise Inventory 4,080 04 OB Account Receivable 12,400 Sales Revenue 12,400 Cost of goods sold Merchandise Inventory 7.440 04 15 Cash Sales discounts Account Receivable 6,800 PAGE DATE/ CREDIT GENERAL JOURNAL ACCR / DESCRIPTION PRO Cash Account Receivable D EBIT 12.400 12.400