Pretty Pictures works weddings and prom-type parties. The balance of Retained Earnings was $20,000 at December 31, 2017. At December 31, 2018, the business's accounting records show these balances:

Prepare the following financial statements for Pretty Pictures 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 13,000 Retained Earnings, Dec. 31, 2018 4,500 Salaries Expense Insurance Expense $ 5,000 10,000 Cash Accounts Payable Advertising Expense Service Revenue 30,000 85,500 115,000 Equipment Dividends 13,000 Common Stock 28,000