Required:

1. Prepare Income Statement.

2. Prepare Retained Earnings Statement.

3. Prepare Balance Sheet.

4. Prepare a Cash Flow Statement

Assume the following: Moderno Engineering Company had the following transactions: Jan-01 Issued capital stock for $955,000. Jan-01 Purchased a Packaging Equipment for $20,000 with a useful life of 5 years and a Salvage value of $2,500. Jan-01 Jan-03 Purchased an Insurance Policy (1 year) for $30,000. Purchased a Machine, paying $10,000 in cash and issuing a note of $20,000. Purchased $23,000 of inventory on account. Jan-05 Jan-07 Sold inventory costing $4,000 for $50,000 on account. Jan-11 Paid $1,000 for inventory purchased on account (from Jan-05). Jan-15 Collect $15,550 of accounts receivable from customers (from Jan-07). Jan-17 Paid utility bills totaling $1,000. Paid wages for $10,000. Jan-23 Jan-25 Collect $3,000 in bank interest. Jan-30 Paid $12,580 due income taxes. Jan-31 Adjust the Insurance account and depreciation expense at the end of the month