The assets, liabilities, owner€™s equity, revenues, and expenses of Davis Design Studio have the following balances at December 31, 2012, the end of its first year of operation. During the year, the owner invested $15,000.

Requirements
1. Prepare the income statement of Davis Design Studio for the year ended
December 31, 2012. What is the result of operations for 2012?
2. What was the amount of the owner withdrawals during theyear?

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Note payable Rent expense Cash Office supplies Salary expense Salaries payable Property tax expense $ 42,000 Office furniture 23,000 Uilities expense $ 49,000 6,900 3,200 33,300 158,300 8,600 4,200 3,600 Accounts payable 4,500 Davis, capital 65,000 Service revenue 2,200 Accounts receivable 1,500 Supplies expense