51 8 52 DECEMBER 31, 2020 Debit Credit Cash $25,000 Accounts Receivable 45,000 Allowance for Doubtful Accounts $2,000 Supplies 2,800 Prepaid Insurance 1,000 Equipment 25,000 Accumulated Depreciation-Equipment 4,000 4,800 Notes Payable Owner's Capital Service Revenue 45,000 79 100 Question 51 of 52 < > Rent Expense Salaries and Wages Expense Utilities Expenses Office Expense 6,500 28,000 1,000 600 $134,900 $134,900 1. Fees received in advance from clients $4,000, which were recorded as revenue. 2. Services performed for clients that were not recorded by December 31, $3,900. 3. Equipment is being depreciated at 8% per year. 4. Bad debt expense for the year is $1,200. 5. Insurance expired during the year $400. 6. Ayayai gave the bank a 90-day, 5% note for $4,800 on December 1, 2020. 7. Rent of the building is $500 per month. The rent for 2020 has been paid, as has that for January 2021. 8. Office salaries and wages earned but unpaid December 31, 2020, $1,200. Ayayai withdrew $10,000 cash for personal use during the year. Prepare an income statement for 2020. Service Revenue Expenses Rent Expense Salaries and Wages Expense Utilities Expenses Office Funonce AYAYAI Income Statement For the Year Ended December 31, 2020 $ 6000 i 29200 i 1000 i $ Office Expense 600 i Bad Debt Expense 1200 i Insurance Expense 400 i Depreciation Expense 2000 i Interest Expense Total Expenses Net Income/(Loss) 20 i +A $ 40420 i Prepare a statement of owner's equity for 2020. (List items that increase owner's equity first.) AYAYAI Statement of Owners' Equity For the Year Ended December 31, 2020 Onwer's Capital, January 1 Add : Net Income (Loss) Less Owner's Drawings Owner's Capital, December 31 38580 -10000