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Prepare a Journal entry for following first year income statement and classified balance sheet.

				Income statement
				1/30/21
Revenues
Service Revenue		$10,000
Exp. & Liabillities
Rent expense		$2,000
Utility expense		$600
Wages. Expense		$1,500
Insurance expense		$750
Total		$4,850
Net income		$5,150

				Cassified blance sheet
				1/30/21
		Assets
Current assets
Cash		$100,000
Accounts receivable		$10,000
Supplies		$25,000
Prepaid Insurance		$5,000
Total		$140,000
Property,plant &equipment
Building		$50,000
Equipment		$40,000
Acc. Depreciation		$20,000
Total		$110,000
Total Assets		$250,000
		Liabilities and stockholders equity
Current liabilities
Notes payable		$10,000
Accounts payable		$20,000
Salary payable		$15,000
Unearned serv. Rev		$25,000
Total		$70,000
Long-term liabilities
Mortgage payable		$10,000
Total liabilities		$80,000
Stockholders equity
Common stock		$30,000
Retained earnings		$100,000
Total Liabilities & SE		$210,000

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