Betty Smith is the owner of Accurate Tax Service. For the year ending April 30, 2007, the following information is available for this service business. At the beginning of this accounting period, the balance in the Betty Smith, Capital account was \($32,000.\) Following is a summary of activities during this accounting period:

Betty Smith, capital withdrawn: \($18,600\) Revenue from income tax preparation: \($71,300\) Revenue from monthly clients: \($43,800\) Salaries expense: \($12,500\) Advertising expense: \($900\) Rent expense: \($6,000\) Automobile expense: \($1,300\) Office supplies expense: \($7,500.

You should assume that all profit (or loss) accrued during this accounting period is absorbed into the Betty Smith, Capital account at the end of the period.

Following are the account balances at the end of this accounting period (except Betty Smith, Capital):

Cash: \($62,500\) Accounts receivable: \($3,700\) Office furniture and fixtures: \($11,300\) Office machines and computers: \($15,000\) Automobile: \($9,500\) Accounts payable: \($1,700

a.\) Prepare an income statement for the year ending April 30, 2007.

b. Prepare a balance sheet as of April 30, 2007.