Refer to the information in M1-7. Prepare a balance sheet at December 31, 2010.

In Problem 7

The Tea Room, a sole proprietorship owned by Gerry Stayman, earned revenues of $220,000 and incurred expenses of $150,000 during its first year of operations ended December 31, 2010. At the end of the year, The Tea Room owned assets of $180,000 and owed liabilities of $30,000. Gerry invested $100,000 cash to establish the new business and withdrew $20,000 during the year. Prepare the Tea Room's income statement for 2010.