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