Question

The asset, liabilities, and equities of Drought Design Studio have the following balances at December 31, 2018. The retained earnings was $33,000 at the beginning of the year. At year end, common stock was $20,000 and dividends were $54,000 EEE (Click the icon to view the account balances.) Prepare the income statement for Drought Design Studio for the year ending December 31, 2018 Data Table Notes Payable Rent Expensc Cash Office Supplies Salalies Experise Property Tax Expense $ 9,800 Office Furniture S 77,800 7,000 3,300 189,700 11,700 4,400 20,000 Utilitics Expensc 3,100 Accounts Payable 4.900 Service Revenue 71,000 Acounls Receivable 1,900 Miscellaneous Expense Print Done Net Income

Answer 1

Drought Design Studio
Income statement for the Year Ended December 31, 2018
Revenue
Serivice Revenue		$189,700
Expenses
Rent Expense	$20,000
Salary Expense	$71,000
Property Tax Expense	$1,900
Utilities Expenses	$7,000
Miscellaneous Expenses	$4,400
Total Expenses		$104,300
Net Income		$85,400

Note: Office supplies are considered as closing stock. So the Office supplies balance will reflect in balance sheet.