Hi. Good Morning

I need the solution for this Accounting 2021 Exercise. To make sure I have correctly. Please send me the step by step process. Everything completely.

Question and Instructions: Based on the trial balance and the additional information, create a Balance Sheet and Income Statement for the period.

Chimichanga Inc. Trial Balance December 31, 2018

Debit Credit

Cash 7,000 A/R 3,000 Office Supplies (Asset) 3,000 Accounts Payable 1,000 Common Stock 10,000 Sales Revenue 7,000 Rent Expense 600 Salaries Expense 2,500 Supplies Expense 1,200 Utilities Expense 700 18,000 18,000

Additional Info

Chimichanga Inc. bought a new food processing machine for $5,000 on January 1 st 2018, with a useful life of 5 years, and a residual value of $1,000. This information is not yet accounted for in the Trial Balance above.