Alternate problem: prepare financial statements These items are taken from the financial statements of Sailing Boats Ltd. at December 31, 2019: Account Accounts Payable Interest Expense Accounts Receivable Interest payable Accumulated depreciation -buildings Accumulated depreciation - furniture & fixtures Long-term investments Service revenue Bank loan payable Buildings Operating expenses Cash Prepaid insurance Common shares, January 1 Retained Earnings, January 1 Furniture & fixtures Supplies Income tax expense Short term investments Notes Payable Rent expense Dividends declared Balance $22,075 4,550 23,780 2,500 55,600 25,500 26,750 194,060 104,795 134,000 165,850 27,450 2,420 45,000 18,520 66,100 2,250 5,300 3,500 2,400 7,700 5,000 Instructions: (a)Prepare an income statement and statement of changes in equity for the year knowing that $4,200 share were issued during the year. (b)Prepare a classified statement of financial position (balance sheet). Assume that $40,500 of the bank loan payable will be paid in 2019