Insurance Expense Cash Accounts Payable Advertising Expense Service Revenue Dividends $ 6,000 Accounts Receivable 42,000 Notes Payable 11,000 Retained Earnings, Dec. 31, 2018 4,000 Salaries Expense $...

Preparing financial statements

Picture Perfect Photography works weddings and prom-type parties. The balance of retained earnings was $16,000 at December 31, 2017. At December 31, 2018, the business’s accounting records show these balances:

Prepare the following financial statements for Picture Perfect Photography for the year ended December 31, 2018:

a. Income statement.

b. Statement of retained earnings.

c. Balance sheet.

Extracted text: Insurance Expense Cash Accounts Payable Advertising Expense Service Revenue Dividends $ 6,000 Accounts Receivable 42,000 Notes Payable 11,000 Retained Earnings, Dec. 31, 2018 4,000 Salaries Expense $ 13,000 14,000 75,000 Equipment 8,000 Common Stock 25,000 46,000 28,000