Refer to the worksheet in E3-37A.
In E3-37A, Analyze the following accounting equation worksheet for Starwood Yacht Repair Corporation and explain the transaction or event that resulted in each entry.

Assume all beginning balances are zero and the information pertains to a fiscal year ended December 31. Prepare the four financial statements from the data given in theworksheet.

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Assets - Liabilities Shareholders' Equity Contributed Capital Common stock $150,000 Earnings All other assets AlI Account liabilities Account Transaction Cash (Account) 1. $150,000 2. (125,000125,000 Property, plant, and equipment 100,000 (500) (650) 100,000 Notes payable 500 Supplies 650 Prepaid 15,000 15,000 Service revenue 7. (375) Supplies (375 Supplies (325) Insurance (500) Salary expense expense (325) Prepaid 500 Salaries payable 10 (1,000) Accumulated (1,000) Depreciation 100 Interest payable (100) Interest -Income Statement Statement of Changes in Shareholders' Equity Balance Sheet Statement of Cash Flows