The following information taken from Joseph business on December 31 that includes assets, liabilities , revenues and expenses were :

Insurance Expenses $4000
Accounts Payable $4000
Miscellaneous Expenses $1000
Accounts Receivable $5000
Rent Expenses $2500
Cash $14000
Salaries Expense $20000
Equipment $11000
Supplies Expense $2200
Notes Payable $4600
The business sold 25units at the price of $1600 per unit
Suppliers on hand $1000 ,with opening balance of $700
Opening owners equity $11500

Required: a) Prepare income statement
b)Prepare balance sheet

[QUOTE=evelyn12;3682541]The following information taken from Joseph business on December 31 that includes assets, liabilities , revenues and expenses were :

Insurance Expenses $4000
Accounts Payable $4000
Miscellaneous Expenses $1000
Accounts Receivable $5000
Rent Expenses $2500
Cash $14000
Salaries Expense $20000
Equipment $11000
Supplies Expense $2200
Notes Payable $4600
The business sold 25units at the price of $1600 per unit
Suppliers on hand $1000 ,with opening balance of $700
Opening owners equity $11500

Required: a) Prepare income statement
b)Prepare balance sheet[/QUOTE

The items underlined belong in the income statement, you will need to make an adjustment in supplies on hand between the income statement and the balance sheet
The others in the balance sheet and don't forget the changes to equity, the bottom line of the income statement]