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, make an income statement for the month ended July 31, 2013, and a balance sheet as of July 31, 2013.

DebitsCredits

Cash$27,400

Accounts receivable500

Prepaid rent2,500

Equipment6,000

Accumulated depreciation, equipment $100

Accounts payable300

Salaries payable240

Interest payable133

Notes payable 20,000

Capital 10,000

Revenues 11,500

Operating expense1,000

Salary expense1,840

Utility expense300

Interest expense133

Rent expense2,500

Depreciation expense100

Totals $42,273$42,273