Problem 2-7A (Algo) Preparing an income statement, statement of owner's equity, and balance sheet. LO P1

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.

Cash	$ 11,800	A. Lopez, Capital	$ 19,200
Accounts receivable	5,400	A. Lopez, Withdrawals	3,900
Notes receivable	4,400	Consulting revenue	21,500
Office supplies	3,400	Rental revenue	2,400
Prepaid insurance	2,900	Salaries expense	4,900
Equipment	13,500	Rent expense	3,900
Accounts payable	7,380	Advertising expense	780
Notes payable	4,300	Utilities expense	580
Unearned revenue	680

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 $19,200 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.