Santo Company's adjusted trial balance on December 31, 2017, follows.

Required
1. Prepare an income statement and a statement of owner's equity for the year 2017, and a classified balance sheet at December 31, 2017. There are no owner investments in 2017.
2. Enter the adjusted trial balance in the first two columns of a six-column table. Use the middle two columns for closing entry information and the last two columns for a post-closing trial balance. Insert an Income Summary account (No. 901) as the last item in the trial balance.
3. Enter closing entry information in the six-column table and prepare journal entries for it.
4. Assume for this part only that
a. None of the $600 insurance expense had expired during the year. Instead, assume it is a prepayment of the next period's insurance protection.
b. There are no earned and unpaid wages at the end of the year. Reverse the $2,700 wages payable accrual. Describe the financial statement changes that would result from these two assumptions.

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SANTO COMPANY Adjusted Trial Balance December 31, 2017 Account Ttle $14,450 5,140 1,200 31,000 101 Cash 125 Store supplies. 128 Prepaid insurance 167 Equipment 168 Accumulated depreciation-Equipment 201 Accounts payable 210 Wages payable 301 P. Santo, Capital 302 P. Santo. Withdrawals. 401 Repair fees earned. 612 Depreciation expense-Equipment 623 Wages expense 637 Insurance expense 640 Rent expense 651 Store supplies expense 690 Utilities expense $ 8,000 1,500 2,700 35,650 15,000 54,700 26,400 1,200 1960 Totals. $102,550 $102,550