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Angela Lopez owns and manages a consulting firm called Metrix, which began operations on December...

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Accounting

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 $ 10,200 Common stock $ 16,000
Accounts receivable 4,600 Dividends 3,100
Notes receivable 3,600 Consulting revenue 17,500
Office supplies 2,600 Rental revenue 1,600
Prepaid insurance 2,100 Salaries expense 4,100
Equipment 9,500 Rent expense 3,100
Accounts payable 4,820 Advertising expense 620
Notes payable 3,500 Utilities expense 420
Unearned revenue 520

Required:

  1. Prepare a December income statement for the business.
  2. Prepare a December statement of retained earnings. The Retained Earnings account balance at December 1 was $0.
  3. Prepare a December 31 balance sheet. Hint: Use the Retained Earnings account balance calculated in part 2.
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