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]