Q4. Following is a trial balance for Nadia Day Care, as of July 31, 2013, the end of its first month of business. Based on the trial balance, prepare an income statement for the month ended July 31, 2013, and a balance sheet as of July 31, 2013. Debits Credits Cash Accounts receivable $27,400 500 Prepaid rent Equipment 2,500 6,000 Accumulated depreciation, equipment $100 Accounts payable 300 Salaries payable 240 Interest payable 133 Notes payable 20,000 Capital 10,000 Revenues 11,500 Operating expense 1,000 Salary expense 1,840 Utility expense 300 Interest expense Rent expense Depreciation expense Totals 100 $42.273 $42.273 133 2,500