Cooley Company reports the following accounts and balances at December 31, 2015:

Accounts Payable $22,800
Accounts Receivable 18,800
Cash 24,400
Land 82,400
Machine 129,200
Merchandise Inventory 63,600
Long-term Note Payable 79,200
Short-term Note Payable 14,400
Paid-in Capital 200,000
Retained Earnings ?
Sales Revenue 122,000
Cost of Goods Sold 80,000
Operating Expenses 40,000

Required:
Prepare a balance sheet at December 31, 2015. Also, prepare an income statement for the year ended December 31, 2015. Ignore depreciation expense and interest expense.

Cooley Company
Balance Sheet
December 31, 2015
Assets:
Cash $24,400
Accounts Receivable 18,800
Merchandise Inventory 63,600
Land 82,400
Machine 129,200
Total assets $318,400

Liabilities:
Accounts Payable $22,800
Short-term Notes Payable 14,400
Long-term Notes Payable 79,200
Total liabilities $116,400

Stockholders' equity:
Paid-in Capital $200,000
Retained Earnings 2,000
Total stockholders' equity $202,000
Total liabilities and stockholders' equity $318,400

Cooley Company
Income Statement
For the Year Ended December 31, 2015

Sales Revenue $122,000
Cost of Goods Sold 80,000
Gross Profit 42,000
Operating Expenses 40,000
Net Income $2,000