The first year records of R. Levitt, Interior Decorator, show the following information for the year-end December 31, 2019:

Required

a. Prepare an income statement for the year.

b. Prepare a balance sheet as of December 31, 2019.

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Insurance expense.. Notes payable..... Decorating fees earned $6,000 Supplies. 57,600 Cash.... 1,600 Accounts receivable. $ 6,500 6,200 8,600 Supplies expense.. 8,100 Advertising expense 700 Miscellaneous expense 1,200 Salaries expense. 36,000 Common stock.. 7,000 Rent expense. 4,500 Retained earnings ? Accounts payable. 2,800