Pharoah's Home Renovations was started in 2008 by Jim Pharoah. Jim operates the business from an office in his home. Listed below, in alphabetical order, are the company's assets and liabilities as at December 31, 2021, and the revenues, expenses, and drawings for the year ended December 31, 2021: Accounts payable $7,879 Operating expenses $3,473 Accounts receivable 10,138 Prepaid insurance 1,806 Cash 8,186 Salaries expense 89,416 Equipment 28,565 Service revenue 158,448 Insurance expense 3,756 Supplies 425 Interest expense 1,109 Supplies expense 21,079 J. Pharoah, drawings 44,419 Unearned revenue 15,441 Notes payable 31,069 Vehicles 41,740 Jim's capital at the beginning of 2021 was $41,275. He made no investments during the year. Prepare the income statement. PHAROAH'S HOME RENOVATIONS Income Statement Prepare the owner's equity statement. (List items that increase owner's equity first.) Prepare the balance sheet. PHAROAH'S HOME RENOVATIONS Statement of Owner's Equity PHAROAH'S HOME RENOVATIONS Balance Sheet Assets $ Liabilities and Owner's Equity $ $ $