Following is an adjusted trial balance for LC & Associates for the year ended December 31, 2009.

Required:
(a) Prepare an income statement for LC & Associates for the year ended December 31, 2009.
(b) Prepare a classified balance sheet for LC & Associates as of December 31, 2009.
(c) Identify three general classes of financial statement users who might make economic decisions based on the financial statements of LC & Associates. How might errors in the financial statements affect such decisions?

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Debit $112,500 95,000 12,000 18,000 40,000 90,500 Credit Cash Accounts Receivable Supplies Prepaid Advertising Prepaid Rent Equipment Accumulated Depreciation- Equipment Accounts Payable Salaries Payable Interest Payable 71,000 38,000 2,400 Unearned Fee Revenue Common Stock Retained Earnings Fee Revenue Interest Revenue Rent Expense Income Tax Expense Salaries Expense Depreciation 19,930 75,000 34,000 315,000 9,100 69,500 35,000 75,000 Expense- Equipment Totals 17,000 $564,500 $564,500