1. Using the list of accounts below, prepare an Income Statement and a Balance Sheet, using the format for basic financial statements shown in this video: https://www.youtube.com/watch?v=B7300KsDdYY

Accounts Receivable $ 5,000

Accounts Payable 10,000

Bank Loan, 10- year 40,000

Building, net 72,500

Cash 22,000

Common Shares 80,000

Depreciation Expense Bldg 2,500

Depreciation Expense Truck 4,100

Service Revenue 53,000

Note Payable 3-month 13,000

Prepaid Rent 20,000

Office Supplies 500

Salaries Expense 6,000

Supplies 8,000

Truck, net 45,000

Utilities Expense 900

2. Complete the basic Statement of Changes in Equity for this company, below, by filling in the missing amount beside each arrow >. We are assuming that this is the companys first year of business, therefore beginning balances in common shares and retained earnings is zero.

Statement of Changes in Equity For year-ended December 31, 2019
	Common Shares	Retained Earnings
Opening balance, January 1	$0	$0
Issue Common Shares	80,000
Paid Dividends		>
Net Income or Profit		>
Closing balance, December 31	$ 80,000	>

3. Once the balance sheet is completed, fill in the missing amount and account name in the Equity Section, so that your balance sheet balances.