Exercise 1-8the following items and amounts were taken from wildhorse co.’s 2017 income statement and balance sheet. cash $ 89,400retained earnings 120,000cost of goods sold 438,800salaries and wages expense 118,500prepaid insurance 8,100inventory 64,900accounts receivable 91,000sales revenue 587,700notes payable 6,100accounts payable 51,200service revenue 5,100interest expense 1,810 in each case, identify whether the item is an asset, liability, stockholders' equity, revenue, or expense item. choose the correct category ' equityexpense cashchoose the correct category liabilitystockholders' retained earningschoose the correct category ' equity cost of goods soldchoose the correct category revenuestockholders' salaries and wages expensechoose the correct category assetstockholders' prepaid insurancechoose the correct category revenuestockholders' inventorychoose the correct category revenuestockholders' accounts receivablechoose the correct category ' equityassetliability sales revenuechoose the correct category stockholders' notes payablechoose the correct category stockholders' accounts payablechoose the correct category ' equityrevenueexpense service revenuechoose the correct category ' equity interest expenseshow list of accounts prepare an income statement for wildhorse co. for the year ended december 31, 2017.wildhorse co. income statementchoose the accounting period for the year ended december 31, 2017december 31, 2017for the month ended december 31, 2017select an opening name for section one dividendsexpensesnet income / (loss)retained earnings, january 1retained earnings, december 31revenuestotal expensestotal revenues enter an income statement item $enter a dollar amount enter an income statement item enter a dollar amount select a closing name for section one dividends expenses net income / (loss) retained earnings, january 1 retained earnings, december 31 revenues total expenses total revenues $enter a subtotal of the two previous amountsselect an opening name for section two dividendsexpensesnet income / (loss)retained earnings, january 1retained earnings, december 31revenuestotal expensestotal revenues enter an income statement item enter a dollar amount enter an income statement item enter a dollar amount enter an income statement item enter a dollar amount select a closing name for section two dividends expenses net income / (loss) retained earnings, january 1 retained earnings, december 31 revenues total expenses total revenues enter a subtotal of the three previous amountsselect a closing name for this statement dividendsexpensesnet income / (loss)retained earnings, january 1retained earnings, december 31revenuestotal expensestotal revenues $enter a total net income or loss amount