1. Prepare an income statement and a retained earnings statement for the 2 months ended December 31, 2017, The note payable has a stated interest rate of 6%, and the principal and interest are due on November 16, 2019.

RUUSU 11al Dalal December 31, 2017 Debit Credit Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation Equipment NT$1,180 875 350 1,210 1,200 NT$ 40 Accounts Payable Salaries and Wages Payable Unearned Service Revenue Notes Payable 300 2,000 Interest Payable 15 800 Share CapitalOrdinary Dividends 500 Service Revenue 4,515 Salaries and Wages Expense 1,006 Utilities Expense 125 Advertising Expense 165 1,025 Supplies Expense Depreciation Expense 40 110 Insurance Expense Interest Expense 15 NT$7,801 NT$7,801