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.