These items are taken from the financial statements of Summit Ltd. at December 31, 2015

Instructions
(a) Calculate net income and the ending balance of retained earnings at December 31, 2018. It is not necessary to prepare a formal income statement or statement of changes in equity.
(b) Prepare a statement of financial position. Assume that $30,500 of the mortgage payable will be paid in 2019.

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Accounts payable Accounts receivable Accumulated depreciation-buildings50,60o Land Accumulated depreciation-equipment 21,470 Long-term investments28,970 Service revenue Buildings Cash $ 21,050 Interest expense 20,780 Interest payable $4,550 2,100 194,000 183,040 Mortgage payable 133,800 Operating expenses 104,000 158,680 24,040 Prepaid insurance 1,420 140,000 Retained earnings, Jan. 1 116,520 Common shares Equipment 66,100 Supplies 1,240 Income tax expense 5,200