Unrealistic Interest Homework The following Balances are from Fred's Fine Lingerie and Harley Shoppe,Inc.: Problem 1 2018 10,000 40,000 36,000 180,000 50,000 10,000 40,000 10,000 2019 Cash 25,000 55,000 23,000 192,000 60,000 5,000 49,000 8,000 ? Al Finaneial Stclena Accounts Receivable Inventory Equipment Accumulated Depreciation Security Deposits Accounts Payable Salaries Payable Taxes Payable Note Payable Common Stock Retained Earnings Sales Revenue 0 100,000 10,000 66,000 75,000 25,000 74,600 200,000 80,000 20,000 24,000 10,000 ? Cost of Goods Sold Salary Expense Rent Expense Interest Expense Depreciation Expense 2 The common stock outstanding was 10,000 shares on January 1, 2019 and then 15,000 shares were issued on June 30, 2019 for $15,000. All equipment purchased was purchased for cash. No equipment was sold during the year. The Note Payable is payable at $25,000 principal plus 10% interest on the unpaid balance each December 31. The tax rate is 30% and 1/2 of 2019 taxes were paid in 2019 and the rest will be paid in 2020. Prepare an Income Statement, Statement of Owners' Equity, Balance Sheet and a Statement of Cash Flows using the indirect method, in good form