Pavlov's Home Renovations was started in 2008 by Jim Pavlov. Jim operates the business from an office in his home. Listed below, in alphabetical order, are the company's assets and liabilities as at December 31, 2017, and the revenues, expenses, and drawings for the year ended December 31, 2017:

Jim's capital at the beginning of 2017 was $45,850. He made no investments during the year.
Instructions
Prepare an income statement, statement of owner's equity, and balance sheet.
TAKING IT FURTHER
Why is it necessary to prepare the income statement first, then the statement of owner's equity, and the balance sheet last?

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7,850 10,080 8,250 29,400 3,375 1,195 44,800 30,800 S 3,545 1,685 88,230 153,750 595 20,095 15,000 Accounts payable Accounts receivable Operating expenses Prepaid insurance Equipment Service revenue Supplies 2 Interest expense J. Pavlov, drawings Notes payable Unearned revenue