Prepare a worksheet balance sheet, income statement, and owner's equity. The following amounts are 

cash 18900 

accounts receivable 11450 

prepaid insurance 4200 

prepaid subscription 1200 

prepaid rent 6000 

equipment 9700 

accumulated depreciation 0 

accounts payable 3100 

interest payable 0 

salary payable 0 

unearned revenue 4600 

bank loan 15000 

capital 12025 

withdraws 2700 

service revenue 32400 

rent expense 2900 

salary expense 5500 

depreciation expense 0 

interest expense 1375 

insurance expense 3200 

subscription expense 0 

The following adjustments for the worksheet are:

#a rent expense is $420

#b equipment useful life is 6 years and $700 residual value

#c 1840 unearned revenue

#d prepaid insurance is paid annually

#e interest expense on the bank loan is 10%

#f prepaid subscription is paid annually

#g service revenue that is earned annually is 4730

Answer rating: 100% (QA)

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