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Dave James decided to start his own rent$-$a$-$car business after graduation. James' Rent$-$a$-$Car had the following ending balances after the first month of operations $($July $2019).$Ending Balances $-$ July $31,2019$Accounts Payable$ $800$Automobile$ $35,800$Bank Loan$ $18,600$Capital Invested in July$ $20,800$Cash$ $8,500$Interest Expense$ $700$James, Capital, July $1,2019$$ $0$James, Withdrawals$ $1,000$Maintenance Expense$ $700$Miscellaneous Expense$ $800$Prepaid Insurance$ $2,000$Salaries Expense$ $900$Service Revenue$ $7,200$Unearned Revenue$ $3,800$Utilities Expense$ $800$RequiredPrepare the income statement, statement of owner's equity, and balance sheet.Do not enter dollar signs or commas in the input boxes.Do not use negative signs.Enter the expenses in alphabetical order on the income statement.Select the proper order for the headings of the financial statements.AnswerIncome StatementAnswerRevenueAnswerAnswerExpensesAnswerAnswerAnswerAnswerAnswerAnswerAnswerAnswerAnswerAnswerTotal ExpensesAnswerNet Income $($Loss$)$AnswerAnswerStatement of Owner's EquityAnswerJames, Capital, July $1,2019$AnswerAdd Capital Invested in JulyAnswerNet Income $($Loss$)$AnswerLess James, WithdrawalsAnswerJames, Capital, July $31,2019$AnswerAnswerBalance SheetAnswerAssetsLiabilitiesCashAnswerAccounts PayableAnswerPrepaid InsuranceAnswerUnearned RevenueAnswerAutomobileAnswerBank LoanAnswerTotal LiabilitiesAnswerOwner's EquityJames, Capital, July $31,2019$AnswerTotal AssetsAnswerTotal Liabilities and Owner's EquityAnswer

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