Dec. 1 1 Wendson contributed $56,000 cash to the business in exchange for capital. 1 Purchased $10,800 of equipment paying cash. Paid $3,600 for a six-month insurance policy starting on December 1. 9 Paid $15,000 cash to purchase land to be used in operations. 10 Purchased office supplies on account, $3,000. 19 Borrowed $25,000 from the bank for business use. Wendson signed a note payable to the bank in the name of the business. The note is due in five years. 22 Paid $2,100 for advertising expenses. 26 Paid $1,400 on account. 28 The business received a bill for utilities to be paid in January, $350. 31 Revenues earned during the month included $14,000 cash and $2,500 on account 31 Paid employees' salaries $4,000 and building rent $1,900. Record as a compound entry 31 The business received $1,160 for auto screening services to be performed next month. 31 Wendson withdrew cash of $5,000. a. Office Supplies used during the month, $1,400. b. Depreciation for the month, $180. c. One month insurance has expired. d. Accrued Interest Expense, $100. Requirement 6. Prepare the income statement, the statement of owner's equity, and the unclassified balance sheet in account form. Begin by preparing the income statement. (If a box is not used in the statement, leave the box empty; do not select a label or enter a zero.) Wendson's Quality Automotive Income Statement Month Ended December 31, 2016 Net Income (Loss) Prepare the statement of owner's equity. Enter any increases in capital prior to the subtotal and any decreases to capital below the subtotal. (Enter a "0" for any zero balances. Use a minus sign or parentheses to show a decrease in capital.) Wendson's Quality Automotive Statement of Owner's Equity Month Ended December 31, 2016 Wendson, Capital, December 1, 2016 Wendson, Capital, December 31, 2016 Prepare the classified balance sheet in report form as of December 31, 2016. Begin by preparing the asset section of the balance sheet and then prepare the liabilities and owner's equity sections. (If a box is not used in the balance sheet, leave the box empty; do not select a label or enter a zero.) Wendson's Quality Automotive Balance Sheet December 31, 2016 Assets Less: Liabilities Owner's Equity