P$1\mathrm{.}9$B $($LO $6)$ AP Judy Johansen operates an interior design business, Johansen

Designs. Listed below, in alphabetical order, are the company's assets and liabilities as

at December $31,2021,$ and the revenues, expenses, and drawings for the year ended

December $31,2021$:

Accounts payable $$6,590,$ Prepaid insurance $$600$

Judy's capital at the beginning of $2021$ was $$35,800.$ She made no investments during

the year. Instructions. Prepare an income statement, statement of owner's equity, and

balance sheet. Taking It Further Why is the balance sheet prepared after the statement

of owner's equity?