The following items are taken from the financial statements of LBJ Company for 2010.

The following items are taken from the financial statements of LBJ Company for 2010.

Accounts payable               $26,500
Accounts receivable               6,000
Accumulated depreciation       9,600
Bonds payable                     28,000
Cash                                    44,000
Common stock                     35,000
Cost of goods sold               19,000
Depreciation expense             4,800
Dividends                               5,300
Equipment                            58,000
Interest expense                     3,500
Patents                                  9,500
Retained earnings, January 1  20,000
Salaries expense                    7,200
Sales revenue                       38,500
Supplies                                 5,500

Instructions:

Prepare an income statement and a retained earnings statement for LBJ Company.