Reference no: EM132072938

Question - Alice Li started Li Design Consultants on December 1, 2013, and invested $5,000 into the business. On December 12, she rendered services to three clients "on account" with total revenues earned of $4,500. She then incurred advertising expense on four different websites and promised to pay a total of $1,600 at a later date. On December 15, she purchased $900 of office supplies for cash. On December 20, she received $1,000 in cash payment from her first client and deposited it into the business account. On December 22, she incurred $2,000 for legal expense and paid cash. On December 31, she made a payment of $300 to one of the websites that she owed for advertising provided earlier in the month. No withdrawals were taken in December. Prepare an income statement for the month of December, a statement of owner's equity for the month of December, and a balance sheet at December 31, 2013.