3. The company borrowed $30,000 on September 1, 2018. The principal is due to be repaid in 10 years. Interest is payable twice a yearon each August 31 and February 28 at an annual rate of 10%.4. The company debits supplies expense when supplies are purchased. Supplies on hand at yearend cost $500.5. Prepaid rent at yearend should be $1,000.1.Complete the worksheet below.2a.Use the information in the worksheet to prepare an income statement for 2018.2b.Use the information in the worksheet to prepare a statement of shareholders’ equity for 2018.2c.Use the information in the worksheet to prepare a balance sheet as of December 31, 2018.3.Prepare the necessary closing entries assuming that adjusting entries have been correctly posted to the accounts.