The following information is for Kon Inc. for the year ended December 31, 2012:

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

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

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

Advertising expense...........................................1,600

Dividends.............................................................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.