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P1-45B Photo Gallery, Inc.,

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P1-45B Preparing financial statements [20–30 min]Photo Gallery, Inc., works weddings and prom-type parties. The balance of Retained
earnings was $17,000 at December 31, 2011. At December 31, 2012, the business’s
accounting records show these balances:


Requirement1. Prepare the following financial statements for Photo Gallery, Inc., for the year
ended December 31, 2012:
a. Income statement
b. Statement of retained earnings
c. Balance sheet

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