E1-28 The assets, liabilities, stockholders’ equity, revenues, and expenses of Davis Design Studio, Inc., have the following

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E1-28 Preparing financial statements and evaluating business performance
[10–15 min]

The assets, liabilities, stockholders’ equity, revenues, and expenses of Davis Design
Studio, Inc., have the following balances at December 31, 2012, the end of its first
year of operation. During the year, the business issued common stock for $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 company’s dividend payments during the year?