Austin Enterprises was started by Daniel Austin. During the current year. Daniel Austin invested $8,000 in the business. Based on the following end of year spreadsheet:
1. Prepare an income statement for the year ended December 31.
2. Prepare the statement of owner's equity for the year ended December 31.

Austin Enterprises End-of-Period Spreadsheet For the Year Ended December 31 Adjusted Trial Balance Income Statement Balance Sheet Account Title Credit Debit Credit Debit Credit Debit Cash 26,500 26,500 Accounts Receivable 7,000 7,000 Supplies 1,000 1,000 18,500 Equipment 18,500 Accumulated Depr.-Equip. 5,000 5,000 Accounts Payable 11,000 11,000 Wages Payable 1,000 1,000 Daniel Austin, Capital 8,000 8,000 Daniel Austin, Drawing 2,000 2,000 59,500 Fees Earned 59,500 Wages Expense 19,000 19,000 Rent Expense 7,000 7,000 Depreciation Expense 3,500 3,500 55,000 Totals 84,500 84,500 29,500 59,500 25,000 Net Income (Loss) 30,000 30,000 59,500 59,500 55,000 55,000