The assets, liabilities, and equities of Drought Design Studio have the following balances at…

The assets, liabilities, and equities of Drought Design Studio have the following balances at December 31, 2016. The retained earnings was $31,000 at the beginning of the year with common stock of $20,000 and dividends of $55,000 at year end. Notes Payable ………. $ 9,800 Rent Expense ………. 22,000 Cash …………. 3,100 Office Supplies ……. 4,500 Salaries Expense ……. 62,000 Property Tax Expense ……. 1,200 Office Furniture ……. $ 55,200 Utilities Expense ……. 6,500 Accounts Payable ……. 3,700 Service Revenue ……. 159,200 Accounts Receivable ……. 10,200 Miscellaneous Expense …. 4,000 Prepare the income statement for Drought Design Studio for the year ending Net December 31, 2016. View Solution:
The assets liabilities and equities of Drought Design Studio have