Click a Pix Photography works weddings and prom-type parties. The balance of retained earnings was $26,000 at

Question:

Click a Pix Photography works weddings and prom-type parties. The balance of retained earnings was $26,000 at December 31, 2015. At December 31, 2016, the business's accounting records show these balances:

Insurance Expense.......$ 11,000

Cash............. 40,000

Accounts Payable....... 6,000

Advertising Expense....... 3,200

Service Revenue....... 95,000

Dividends........... 10,000

Accounts Receivable.......$ 12,000

Notes Payable........... 9,000

Retained Earnings, Dec. 31, 2016 ... ?

Salaries Expense....... 20,000

Equipment........... 73,800

Common Stock....... 34,000

Prepare the following financial statements for Click a Pix Photography for the year ended December 31, 2016:

a. Income statement.

b. Statement of retained earnings.

c. Balance sheet.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...