Reference no: EM132642075

The? asset, liabilities, and equities of Davidson Design Studio have the following balances at December 31?, 2018. The retained earnings was $33,000 at the beginning of the year. At year? end, common stock was $10,000 and dividends were $51,000.

Problem 1: Prepare the statement of retained earnings for Davidson Design Studio for the year ending December 31?, 2018.

Note payable 12,500            office furniture 43,700
rent expense 25,000            utilities expense 7,000
cash 3,400                          accounts payable 3,000
office supplies 4,500           service revenue 149,700
salaries 60,000                     accounts receivable 7,900
property tax expense 1,800         miscllenaous exp 3,900

davidson design studio
income statement
year ended December 31,2018
Revenue;
service revenue 149,700
expenses;
salaries expense 60,000
rent expense 25,000
utilities expense 7,000
miscellenaous exp 3,900
property tax expense 1,800

total expenses 97,700
net income 52,000