Chapter 1, Problem 8EA

Dukakis Company had the following accounts and balances during 2014: Service Revenue, $13,200; Rent Expense, $1,200; Wages Expense, $8,340; Advertising Expense, $1,350; Utilities Expense, $900; and Withdrawals, $700. In addition, the yearend balances of selected accounts were as follows: Cash, $1,550; Accounts Receivable, $750; Supplies, $100; Land, $1,000; Accounts Payable, $450; Investment by Owner, $1,240; and beginning capital balance of $1,000.

Prepare Dukakis’s income statement, statement of owner’s equity, and balance sheet (assume the year ends on December 31, 2014). (Hint: You must first solve for the net income and ending balances of owner’s equity for 2014.)