Prepare the financial statement that helps address the first issue concerning Collins.

Can Collins expect to get the loan? Give your reason(s).

One year ago, Ralph Collins founded Collins Consignment Sales Company, and the business has prospered. Collins comes to you for advice. He wishes to know how much net income the business earned during the past year. The accounting records consist of the T-accounts in the ledger, which were prepared by an accountant who has moved. The accounts at December 31, 2016, follow: 2.800 Office Supplies 2.600 Bal. 5,800 12,300 Bal 52,000 18,500 Ba Unearned Revenue Common Stock Salaries Payable 4,100Ba 0,000 Bal B S0,000 Depreciation alaries Expense 80,700Ba B 17,000 Expense Utilities Expense Supplies Expense Collins indicates that, at year-end, customers owe the business $1,000 accrued service revenue, which the business expects to collect early next year. These revenues have not been recorded During the year, the business collected $4,100 service revenue in advance from customers, but the business has carned only S800 of that amount. During the year Collins Consignment has incurred $2,400 of advertising expense, but the business has not yet paid for it. In addition, the business has used up S2,100 of the office supplies. Collins determines that depreciation on equipment was $7,000 for the year. At December 31, 2016, the business owes its employee S1,200 accrued salary To get a loan to expand the business, Collins must show the bank that the business's stockholders' equity has grown from its original $40,000 balance. Has it? You and Collins agree that you will meet again in one week Requirements Prepare the financial statement that helps address the first issue concerning Collins. Can Collins expect to get the loan? Give your reason(s). 1. 2