Exercise 1-23 (Algo) Linking the income statement and statement of owner's equity LO P2

Terrell Company reported the following data at the end of its first year of operations on December 31.

Equipment	$ 21,000
Accounts payable	10,000
Owner investments	25,000
Terrell, Withdrawals	8,000
Services revenue	57,000
Rent revenue	12,000
Salaries expense	40,000
Advertising expense	6,000
Utilities expense	4,000

(a) Prepare its year-end income statement.

(b) Prepare its year-end statement of owner's equity, using net income calculated in part a. Hint: Terrell, Capital on January 1 was $0.