P1-43A Preparing financial statements Click a Pix Photography works weddings and prom-type parties. The balance of Adams, Capital was $26,000 at December 31, 2015. At December 31, 2016, the businesss accounting records show these balances:Insurance Expense$ 11,000Accounts Receivable$ 12,000Cash 40,000 Notes Payable 9,000 Accounts Payable 6,000 Adams, Capital, Dec. 31, 2016?Advertising Expense 3,200 Salaries Expense 20,000Service Revenue 95,000Equipment 73,800 Adams, Withdrawals 10,000 Owner contribution 34,000 Prepare the following financial statements for Click a Pix Photography for the year ended December 31, 2016:a. Income statement.b. Statement of owners equity.c. Balance sheet. CHAPTER 144 chapter 1P1-44A Preparing financial statements The bookkeeper of Lone Star Landscaping prepared the companys balance sheet while the accountant was ill. The balance sheet contains numerous errors. In particular, the bookkeeper knew that the balance sheet should balance, so he plugged in the owners equity amount needed to achieve this balance. The owners equity is incorrect. All other amounts are correct, but some are out of place or should not be included in this statement. Prepare a corrected balance sheet.LandCashAccounts Receivable Office Supplie Salaries ExpenseProperty Tax ExpenseAccounts PayableTotal AssetsTotal LiabilitiesTow, CapitalAssetsLiabilitiesOwners Equity$ 4,900$ 72,75030033,8003,100Office Furnitur6,00024,200Rent ExpenseNotes Payable450$ 2,100Tow, WithdrawalsService Revenue8,00044,000$ 72,7502,7002,80013,150LONE STAR LANDSCAPINGBalance SheetMonth Ended November 30, 2016P1-45A Using the accounting equation for transaction analysis and preparing financial statementsAlfonso Sheen recently opened his own accounting firm, which he operates as a sole proprietorship. The name of the new entity is Alfonso Sheen, CPA. Sheen experienced the following events during the organizing phase of the new business and its first month of operations in 2016:Feb. 5 Sheen deposited $70,000 in a new business bank account titled Alfonso Sheen, CPA. The business gave capital to Sheen. 6 Paid $350 cash for letterhead stationery for new office.7 Purchased office furniture for the office on account, $7,000. 10 Consulted with tax client and received $1,800 for services rendered. 11 Paid utilities, $400.12Finished tax hearings on behalf of a client and submitted a bill for accounting services, $11,000. 18 Paid office rent, $1,000.25Received amount due from client that was billed on February 12.27Paid full amount of accounts payable created on February 7.29Sheen withdrew $4,500.Learning Objective 5Total Assets $47,100Learning Objectives 4, 52b. Ending Capital $76,900