The following information is for Kon Inc. for the year ended December 31, 2018:

Common shares, Jan. 1.......................$20,000

Common shares issued during year..........10,000

Retained earnings, Jan. 1......................58,000

Office expense....................................1,600

Dividends declared...............................5,000

Rent expense....................................12,400

Service revenue.................................61,000

Utilities expense..................................2,400

Salaries expense.................................30,000

Income tax expense..............................3,000

Instructions

Prepare an income statement and statement of changes in equity for the year.