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
b. Statement of retained earnings
c. Balancesheet

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$ 8,000 Accounts receivable 37,000 Note payable $ 8,000 12,000 Insurance expense Cash Accounts payable Advertising expense Service revenue Dividends 7,000 Retained earnings Salary expense 25,000 80,000 Equipment 50,000 13,000 Common stock 29,000