Precision Pics works weddings and prom-type parties. The balance of Retained Earnings was $26,000 at December 31,

Question:

Precision Pics works weddings and prom-type parties. The balance of Retained Earnings was $26,000 at December 31, 2015. At December 31, 2016, the business'saccounting records show these balances:

Insurance Expense......$ 14,000

Cash............ 38,000

Accounts Payable...... 13,000

Advertising Expense...... 3,500

Service Revenue...... 110,000

Dividends.......... 11,000

Accounts Receivable...... $ 7,000

Notes Payable.......... 9,000

Retained Earnings, Dec. 31, 2016?

Salaries Expense...... 21,000

Equipment.......... 96,500

Common Stock...... 33,000

Prepare the following financial statements for Precision Pics for the year ended December 31, 2016:

a. Income statement.

b. Statement of retained earnings.

c. Balance sheet.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...