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, 2014, and the revenues, expenses, and drawings for the year ended December 31, 2014:

Judy's capital at the beginning of 2014 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?

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Accounts payable Accounts receivable Cash Equipment Furniture Interest expense Insurance expense J. Johansen drawings Notes payable 590 6,745 11,895 9,850 15,750 Prepaid insurance Rent expense Salaries expense Service revenue Supplies $ 6, $ 600 18,000 70,500 132,900 675 3,225 3,000 2,500 2,400 350 Supplies expense 1,800 Telephone expense Unearned revenue Utilities expense 40,000 7,000