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Question
Alice Li started Li Design Consultants and invested $5,000 into the business. On Dec. 12, she rendered services to three clients "on account" with total revenues earned of $4,500. She then incurred advertising expense on four different websites and promised to pay a total of $1,600 at a later date. On Dec. 15, she purchased $900 of office supplies for cash. On Dec. 20, she received $1,000 in cash payment from her first client and deposited it into the business account. On Dec. 22, she incurred $2,000 for legal expense and paid cash. On Dec. 31, she made a payment of $300 to one of the websites that she owed for advertising provided earlier in the month. No withdrawals were taken in December. Please prepare an income statement for the month of December, a statement of owner's equity for the month of December, and a balance sheet at Dec. 31, 2012.
Answer
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