1. Nelson incorporated her business on January 1,2020 , under the name Nelson Consulting. She used $10 , 000 of her savings to start the business, receiving 1,000 shares of $1 par common stock. The following information is provided about her 2020 business activities and year-end adjustments. 2. On January 1, 2020, Nelson borrowed $20 , 000 from the Citizens National Bank, under the following terms: principal due January 1,2021 ; interest rate is 10% per year, with interest paid semiannually on June 30 and December 31 (i.e., 5% cash payment every six months). Nelson made both the June \& December interest payments as scheduled. 3. On January 1, Nelson paid $25 , 000 cash for computers and other high-tech office equipment. Because of the rapid obsolescence of computer-related equipment, she estimates that the equipment has a three-year life with an estimated $1 , 000 salvage value. Nelson uses straight-line depreciation [Hint: Depreciation expense = ( cost ? salvage value ) / useful life . 4. On January 1, Nelson signed a one-year lease on office space at $900 per month, with rent due on the first day of each month. Nelson made the rent payments during 2020 as scheduled. 5. Because Nelson's business is a service business, she has no inventory. Clients buy any needed equipment directly from other vendors. During 2020 , Nelson purchased $3 , 500 in miscellaneous office supplies, accounting for the purchase as a current asset - Supplies. 6. Nelson billed clients for $190 , 000 in services performed during 2020 , and she collected $115 , 000 . Nelson's services were not subject to sales tax. 7. Nelson incurred $26 , 000 in advertising expenses during 2020 . She owed $8 , 000 of that amount to the advertising agency at December 31, 2020. She intends to pay the balance owed in January 2021. 8. Nelson incurred $22 , 000 in miscellaneous administrative expenses during the year. Of these, she owed $5 , 000 at year-end. 9. Nelson paid federal income taxes of $19 , 000 : 10. Nelson paid herself a $1 , 800 salary per month. (Ignore payroll taxes and other payroll-related expenses.) Information for year-end adjustments: 11. Of the $3 , 500 in supplies purchased in 2020 , supplies costing $750 were still on hand at December 31 . 2020. 12. At December 31,2020 , Nelson decided that one accounts receivable for $6 , 500 would not be collected. and that the remaining accounts receivable would be collected in 2021 . The $6 , 500 accounts receivable was charged to bad debt expense. 13. At year-end, Nelson recorded straight-line depreciation on the assets purchased in #3. Required: Prepare the income statement and balance sheet for Nelson Consulting as of December 31,2020 (her first year of operations)