20) Alice Li started Li Design Consultants on
December 1, 2013, and invested $5,000 into the
business. On December 12, she rendered services to
three clients "on account" with total revenues earned
of $4,500. She then incurred advertising expenses on
four different websites and promised to pay a total of
$1,600 at a later date. On December 15, she purchased
$900 of office supplies for cash. On December 20, she
received $1,000 in cash payment from her first client
and deposited it into the business account. On
December 22, she incurred $2,000 for legal expenses
and paid cash. On December 31, she made a payment
of $300 to one of the websites that she owned for
advertising provided earlier in the month. No
withdrawals were taken in December. 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 December 31, 2013.
