Following is a trial balance for Nadia Day Care, as of July 31, 2013, the end of its first month of business. Based on the trial balance, prepare an income statement for the month ended July 31, 2013, and a balance sheet as of July 31, 2013.

Debits Credits

Cash $27,400

Accounts receivable 500

Prepaid rent 2,500

Equipment 6,000

Accumulated depreciation, equipment $100

Accounts payable 300

Salaries payable 240

Interest payable 133

Notes payable 20,000

Capital 10,000

Revenues 11,500

Operating expense 1,000

Salary expense 1,840

Utility expense 300

Interest expense 133

Rent expense 2,500

Depreciation expense 100

Totals $42,273 $42,273