Preparing financial statements and evaluating business performanceThe assets, liabilities,...

Preparing financial statements and evaluating business performance

The assets, liabilities, owner’s equity, revenues, and expenses of Davis Design Studio have the following balances at December 31, 2012, the end of its first year of operation. During the year, the owner invested $15,000.

Requirements

1. Prepare the income statement of Davis Design Studio for the year ended December 31, 2012. What is the result of operations for 2012?

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2. What was the amount of the owner withdrawals during the year?