Angela Lopez owns and manages a consulting firm called Metrix, which began operations on December 1. On December 31, Metrix shows the following selected accounts and amounts for the month of December. 

Required

1. Prepare a December income statement for the business. 

2. Prepare a December statement of owner’s equity. The A. Lopez, Capital account balance at December 1 was $0, and the owner invested $11,600 cash in the company on December 2. 

3. Prepare a December 31 balance sheet. Hint: Use the A. Lopez, Capital account balance calculated in part 2.

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Accounts payable...... Notes payable. . Cash $8,000 $ 1,300 Rental revenue.. $ 500 ......... Accounts receivable.. 3,500 2,400 Salaries expense 3,000 Rent expense .. Advertising expense.. Utilities expense.. Notes receivable 2,500 Unearned revenue. 300 2,000 Office supplies . 1,500 A. Lopez, Capital. .. 11,600 400 Prepaid insurance 1,000 A. Lopez, Withdrawals 2,000 200 Equipment... 4,000 Consulting revenue ... 12,000