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.

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