$-$ The equipment depreciates $$350$ per month.

$-$One$-$half of the unearned revenue was recognized as revenue during the quarter.

$-$Interest of $$1,500$ is accrued on the notes payable.

$-$Supplies on hand total $$850.$

$-$Insurance expires at the rate of $$400$ per month.

$-$A sale and delivery is made on a piece of equipment for $$2,000$ and the equipment costs $$1,500.$ The sale is a credit sale. Record sale under a perpetual system of inventory.

$-$The company wrote off an account for $$5,000,$ which was subsequently recovered.

Prepare the income statement and the balance sheet