Prepare an income statement and a retained earnings statement for fied balance sheet at August 31, 2017. August and a classi- 3-6 The following accounts, in alphabetical order, were selected from recent financial st ents of Krispy Kreme Doughnuts, Inc. Accounts Payable Accounts Receivable Common Stock Depreciation Expense Interest Expense Interest Income Inventories Prepaid Expenses Property and Equipment Revenues Instructions For each account, indicate (a) whether the normal balance is a debit or a credit, and (b) the financial statement- balance sheet or income statement-where the account should be presented. E3-7 Selected transactions for Front Room, an interior decorator corporation, in its first of business, are as follows. 1. Issued stock to investors for $15,000 in cash. 2. Purchased used car for $10,000 cash for use in business. 3. Purchased supplies on account for $300 2 700 for services nerformed