Reference no: EM13548061

Preparing financial statements

Studio Photography works weddings and prom-type parties. The balance of Ansel, capital was $16,000 at December 31, 2011. At December 31, 2012, the business"s

accounting records show these balances:

9

Insurance expense	$ 8,000	Accounts receivable	$ 8,000
Cash	37,000	Note payable	12,000
Accounts payable	7,000	Ansel, capital, Dec 31, 2012	?
Advertising expense	3,000	Salary expense	25,000
Service revenue	80,000	Equipment	50,000
Ansel, drawing	13,000	Owner investment, 2012	29,000

Requirement

1. Prepare the following financial statements for Studio Photography for the year ended December 31, 2012:

a. Income statement

b. Statement of owner"s equity

c. Balance sheet