Question

8. The asset, liabilities, and equities of Davidson Design Studio have the following balances at December 31, 2018. The retained eamings was $35,000 at the beginning of the year. At year end, common stock was $12,000 and dividends were $52,000. (Click the icon to view the account balances.) Prepare the income statement for Davidson Design Studio for the year ending December 31, 2018 (2) (3) Net Income 8: Data Table S Notes Payable Rent Expense Cash Office Supplies Salaries Expense Property Tax Expense 9.200 20,000 3,400 4,100 68,000 1,700 Office Furniture Utilities Expense Accounts Payable Service Revenue Accounts Receivable Miscellaneous Expense 51,300 8,300 3,800 159,200 8,900 3,500

Answer 1

Solution:   

Devidson Design Studio

Income Statement

Year ended December 31, 2018

Revenues:		$
Service Revenue		159200
Expenses:
Salaries Expenses	68000
Rent Expenses	20000
Utilities Expenses	6300
Misc. Expenses	3500
Property Tax Expenses	1700
Total Expenses		99500
Net Income		59700