Pretty Pictures works weddings and prom-type parties. The balance of Lemon, Capital was $20,000 at December 31, 2023. At December 31, 2024, the business’s accounting records show these balances:

Prepare the following financial statements for Pretty Pictures:
a. Income statement for the year ended December 31, 2024.
b. Statement of owner’s equity for the year ended December 31, 2024.
c. Balance sheet as of December 31, 2024.

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Insurance Expense Cash Accounts Payable Advertising Expense Service Revenue Lemon, Withdrawals $ 6,000 Accounts Receivable 42,000 Notes Payable 13,000 Lemon, Capital, Dec. 31, 2024 4,500 Salaries Expense 115,000 Equipment 13,000 Owner contribution $ 5,000 10,000 ? 30,000 85,500 28,000