Part 1 Balances and T-Accounts Edward James decided to start his own rent-a-car business after graduation James Rent-a-Car had the following ending balances after the first month of operations January 2016) Ending Balances - January 31, 2016 Accounts Payable $600 Automobile $35,000 Bank Loan $18,000 Capital Invested in January $20,000 Cash $9,200 Interest Expense $200 James, Capital, January 1, 2016 $0 James, Drawings $1,000 Maintenance Expense $800 Miscellaneous Expense $300 Prepaid Insurance $1,500 Salaries Expense $1,000 Service Revenue $8,000 Unearned Revenue $3,000 Utilities Expense $600 Required Prepare the income statement, statement of owner's equity, and balance sheet. Income Statement Revenue Expenses Total Expenses Net Income (Loss) Statement of Owner's Equity James, Capital, January 1, 2016 Add Capital Invested in January Net Income (Loss) Less James, Drawings James, Capital, January 31, 2016 Balance Sheet Assets Cash Prepaid Insurance Automobile Liabilities Accounts Payable Unearned Revenue Bank Loan Total Liabilities Owner's Equity James, Capital, January 31, 2016 Total Liabilities and Owner's Equity Total Assets