Problem 1-9A Ivanhoe's Home Renovations was started in 2008 by Jim Ivanhoe. 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, 2017, and the revenues, expenses, and drawings for the year ended December 31, 2017: $3,524 1,945 88,064 Accounts payable $7,539 Operating expenses Accounts receivable 10,175 Prepaid insurance Cash 8,008 Salaries expense Equipment 30,208 Service revenue Insurance expense 4,079 Supplies Interest expense 1,284 Supplies expense J. Ivanhoe, drawings 44,038 Unearned revenue Notes payable 31,477 Vehicles 158,080 792 19,256 15,309 42,560 Jim's capital at the beginning of 2017 was $41,528. He made no investments during the year. Prepare the income statement. IVANHOE'S HOME RENOVATIONS Income Statement Service Revenue Insurance Expense Supplies Expense Interest Expense Operating Expense Salaries Expense Total Expenses Total Revenues Prepare the owner's equity statement. (List items that increase owner's equity first.) IVANHOE'S HOME RENOVATIONS Statement of Owner's Equity J. Ivanhoe, Capital, January 1 J. Ivanhoe, Drawings J. Ivanhoe, Capital, December 31 Prepare the balance sheet. IVANHOE'S HOME RENOVATIONS Balance Sheet Assets Cash $ Supplies Expense Accounts Receivable Prepaid Insurance Equipment Vehicles Total Assets Liabilities and Owner's Equity Liabilities Accounts Payable $ Unearned Revenue Notes Payable Total Liabilities Total Liabilities and Owner's Equity