Below are the financial accounts of Landscape Design. The company has just completed its third year of operations ended November 30, 20x8.

Accounts Receivable ........................................................$ 9,100

Accounts Payable.................................................................7,400

Cash ...........................................................................141,600

Design Service Revenue ....................................................248,000

J. Hope, Capital, November 30, 20x7 ......................................70, 400

Marketing Expense .......................................................... 19,700

Office Rent Expense ........................................................18, 200

Salaries Expense .............................................................96, 000

Salaries Payable ............................................................... 2,700

Supplies .......................................................................... 800

Supplies Expense............................................................... 3,100

Withdrawals ....................................................................40,000

Required

1. Prepare the income statement, statement of owner's equity, and balance sheet for Landscape Design. There were no investments by the owner during the year.

2. User Insight: Evaluate the company's ability to meet its bills when they come due.