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Preparing Financial Statements & Evaluating Business Performance

Accent Photography works weddings and prom-type parties. The balance of capital was $20,000 at December 31, 2010. At December 31, 2011, the business’s accounting records show these balances: Insurance expense $8,000 Accounts receivable $10,000Cash 31,000 Note payable 12,000Accounts payable 6,000 Owner’s equity ?Advertising expense 1,000 Salary expense 27,000Service Revenue 81,000 Equipment 60,000Owner withdrawals 15,000 Owner Investment 33,000Requirement: Prepare the following financial statements for Accent Photography for the year ended December 31, 2011:a. Income statement b. Statement of owner’s equityc. Balance sheet

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