LMN Co. presents the following details:

• Cash: $8,000
• Accounts Receivable: $25,000
• Supplies: $2,500
• Prepaid Insurance: $1,500
• Accounts Payable: $6,000
• Notes Payable: $14,000
• Office Equipment: $75,000
• Accumulated Depreciation: $25,000
• Common Stock: $40,000
• Retained Earnings: $37,000

Requirements:

1. Draft the adjusted trial balance.
2. Calculate the working capital.
3. Journalize the following adjustments:
   • Supplies expense: $500
   • Insurance expense: $300
4. Prepare an income statement.
5. Discuss the role of notes payable in corporate finance.