(L. OBJ. 9, 10) Preparing financial statements and evaluating business performance [20—3...

(L. OBJ. 9, 10) Preparing financial statements and evaluating business performance [20—30 min]

Picture Gallery works weddings and prom-type parties. The balance of capital was $18,000 at December 31, 2010. At December 31, 2011, the business’s accounting records show these balances:

Requirements

1. Prepare the following financial statements for Picture Gallery for the year ended December 31, 2011:

a. Income statement

b. Statement of owner’s equity

c. Balance sheet