Preparing financial statements [20-30 min]Studio Photography, Inc., works weddings and pro...

Preparing financial statements [20-30 min]

Studio Photography, Inc., works weddings and prom-type parties. The balance of retained earnings was $16,000 at December 31, 2011. At December 31, 2012, the business’s accounting records show these balances:

Requirement

1. Prepare the following financial statements for Studio Photography, Inc. for the year ended December 31, 2012:

a. Income statement

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b. Statement of retained earnings

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c. Balance sheet