Requirement 1. Prepare Balsamo Corporation's 2018 single-step income statement, statement of retained earnings, and balance sheet.

Begin by preparing Balsamo's 2018 income statement.

i Data Table Credit Balsamo Corporation Adjusted Trial Balance October 31, 2018 Account Debit Cash 17,000 Accounts receivable 18,800 Supplies 2,700 Prepaid rent 1.300 Equipment 37,300 Accumulated depreciation-equipment Accounts payable Interest payable Unearned service revenue Income tax payable Note payable Common stock Retained eamings Dividends 11,000 Service revenue Depreciation expense-equipment 1.800 Salary expense 40.700 Rent expense 11.200 Interest expense 2.900 Insurance expense 3.700 Supplies expense 2,200 6,500 Income tax expense $ 157,100 $ Total 4.800 9.100 600 700 2,800 18,100 15,000 4,000 102,000 157.100 Print Done Balsamo Corporation Income Statement Year Ended October 31, 2018 Income before tax Accounts receivable Depreciation expense Expenses Income tax expense Insurance expense Interest expense Interest income Net income Rent expense Revenue Salary expense Service revenue Supplies expense Total expenses Utilities expense