These items are taken from the financial statements of Skysong, Inc. for 2017. Retained earnings (beginning of year) Utilities expense $34,810 2,130 69,810 21,880 14,450 4,470 12,000 12,000 70,720 4,970 1,670 3,290 15,280 2,510 39,720 21,950 Accounts payable Salaries and wages payable Common stock Dividends Service revenue Prepaid insurance Maintenance and repairs expense Depreciation expense Accounts receivable Insurance expense Salaries and wages expense Accumulated depreciation-equipment Your answer is correct. Prepare an income statement for the year ended December 31, 2017.

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan