The following transactions apply to Pecan Co. for 2018, its first year of operations: 1. Received $38,000 cash in exchange for issuance of common stock. 2. Secured a $104,000 ten-year installment loan from State Bank. The interest rate is 4 percent and annual payments are $12,636. 3. Purchased land for $28,000. 4. Provided services for $115,000. 5. Paid other operating expenses of $40,000. 6. Paid the annual payment on the loan. Required a. Organize the transaction data in accounts under an accounting equation. b. Prepare an income statement and balance sheet for 2018. c. What is the interest expense for 2019? 2020? Complete this question by entering your answers in the tabs below. Req A Req B Inc Stmt Req B Bal Sheet Reqc Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. If there is no effect on the Accounts Titles / Retained Earnings, leave the cell blank.) Assets PECAN COMPANY Effect of Events on the Accounting Equation Liabilities + Stockholders' Equity Note Common Retained Payable Stock Earnings Event No. Accounts Titles / Retained Earnings Cash Land = + 2018 1. 2. + + + + + + + + 3. ++++++ 4. + 5. 6. +++ + Bal. 0 0+ 0 + 0 Req A Req B Inc Stmt > Complete this question by entering your answers in the tabs below. Req A Req B Inc Stmt Req B Bal Sheet Reqc Prepare an income statement for 2018. PECAN COMPANY Income Statement For the Year Ended December 31, 2018 Service revenue $ 115,000 Operating expenses 40,000 Net operating income Non-operating items: Net income 70,840 Complete this question by entering your answers in the tabs below. Req A Req B Inc Stmt Req B Bal Sheet Reqc Prepare a balance sheet for 2018. PECAN COMPANY Balance Sheet As of December 31, 2018 Assets $ 0 Total assets Liabilities 0 Total liabilities Stockholders' Equity 0 Total stockholders' equity Total liabilities and stockholders' equity $ 0 Complete this question by entering your answers in the tabs below. Req A Req B Inc Stmt Req B Bal Sheet Reqc What is the interest expense for 2019 and 2020? (Round your answers to the nearest whole dollar amount.) 2019 2020 Interest expense