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7-4 AUTOMATED CHALLENGE PROBLEM ACCOUNTING Preparing financial statements with two sources of revenue and a net loss Peachtree QR Forms are given in the Working Papers. The information below is obtained from the work sheet of Lawn Mow for the month ended October 31 of the current year. INCOME STATEMENT BALANCE SHEET ACCOUNT TITLE DEBIT CREDIT CREDIT DEBIT 189800 9500 650.00 1 200 00 5 800 11000 21 500 400000 Cash Accts Rec-Sandra Rohe Supplies - Prepaid Insurance Accts. Pay--Corner Garage Accts. Pay-Broadway Gas Accts. Pay.-Esko Repair Ryo Morrison, Capital Ryo Morrison, Drawing 10 Income Summary 11 SalesLawn Care Sales-Shruh Care Advertising Expense Insurance Expense Miscellancous Expense Rent Expense Supplies Expense 10000 10 11 49 00 00 25 00 00 14 15 390.00 40000 5 5000 3,300.00 3200100 784000 4383/00 1 Net Loss 7400.00 44000 784000 3943.00 24000 438300 784000 4383002 Instructions: 1. Prepare an income statement for the month ended October 31 of the current year. 2. Calculate and record the component percentages for total expenses and net loss. Place the percentage for net loss in parentheses to show that it is for a net loss. Round percentage calculations to the nearest 0.1%. 3. Prepare a balance sheet for October 31 of the current year