Photo Gallery, Inc., works weddings and prom-type parties. The balance of Retained earnings was $17,000 at December 31, 2011. At December 31, 2012, the business€™s accounting records show these balances:Photo Gallery, Inc., works weddings and prom-type parties. The balance of Retained earnings was $17,000 at December 31, 2011. At December 31, 2012, the business€™s accounting records show these balances:

Requirement
1. Prepare the following financial statements for Photo Gallery, Inc., for the year ended December 31, 2012:
a. Income statement
b. Statement of retained earnings
c. Balancesheet

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Insurance expense Cash Accounts payable Advertising expense Service revenue Dividends $ 6,000 9,000 Accounts receivable 26,000 Note payable 4,000 Retained earnings 2,000 Salary expense 78,000 Equipment 14,000 Common stock 14,000 21,000 70,000