prepare Income statement and balance sheet

Pavlov's Home Renovations was started in 2008 by Jim Pavlov. 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 $7,850 Operating expenses $3,545 Accounts receivable 10,080 Prepaid insurance 1,685 Cash 8,250 Salaries expense 88,230 Equipment 29,400 Service revenue 153,750 Insurance expense 3,375 Supplies 595 Interest expense 1,195 Supplies expense 20,095 J. Pavlov, drawings 44,800 Unearned revenue 15,000 Notes payable 30,800 Vehicles 42,000 Jim's capital at the beginning of 2021 was $45,850. He made no investments during the year