As published in its annual report, the balance sheet and income statements of JanCo include the items shown below (listed alphabetically). All balances are as shown on the statements; no additional transaction processing or adjustments are required.

a. Prepare a balance sheet for JanCo.

b. Prepare an income statement for JanCo.

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Accounts payable $12,000 Notes payable $6,000 Accounts receivable $21,000 Prepaid rent $1,050 Advertising expense $600 Property, plant, and equipment $15,300 Cash $22,950 Rent expense $2,100 Common stock $54,000 Retained earnings $1,500 Cost of goods sold $15,000 Sales revenue $27,000 Depreciation expense $300 Wages expense $7,500 Inventory $14,400 Wages payable $1,200