End Year 1 Q3: The following the balance sheet at the end of year 1and 2, Summary of operations for year 2 and additional information for Joe Co. a single proprietorship Assets End Year 2 Liabilities & capital End Year End Year 2 1 Cash $ 4,680 ? A/P $ 9,400 8500 N/R From Suppliers (no 12,000 12000 Accrued Salaries 1,100 1.900 change during the year) Payable A/R 4,000 7,600 -Accrued interest 320 530 Unearned rent Revenue 600 Joe capital 450 55,900 ? Receivable Inventory 18,000 25,000 Unexpired insurance 500 700 Building & Equipment 40,000 ? Less: Accu. Depreciation (12,500) ? Total assets 67.000 ? Total Liabilities & capital 67.000 ? Joe Com. Summery of operation for year 2 (from cash and supplementary records) Cash receipts Collection on accounts Receivable Sales for cash 35,000 $ 42,000 540 Interest revenue Rent revenue Total Cash receipts Cash payment A/P for merchandise (including freight) Insurance premiums .Salaries Other operation expenses 3,600 81,140 53,400 940 10,700 3,000 6,000 Drawing by owner Total Cash payment Other operating information 74,040 Cash discounts taken by customers (sales Discounts) sales returned and allowance Accounts receivable written off as uncollectable during year 2 Cash discounts taken on purchases (purchases discounts) Purchases returned and allowance Additional information: 600 1,800 300 1,100 970 1) No acquisitions or disposals of building or equipment took place during year 2. 2) Depreciation is computed at 2,800 $ for year 2. 3) The direct write-off method is used to recognize doubtful accounts expenses. Required Prepare income statement and balance sheet for year 2