This alphabetized adjusted trial balance is for GalaVu Entertainment as of its December 31, 2014, year-end.

Required
Use the information in the trial balance to prepare:
a. The income statement for the year ended December 31, 2014.
b. The statement of changes in equity for the year ended December 31, 2014, assuming that the owner made additional investments of $15,000 during the year.
c. The balance sheet as of December 31, 2014.
Analysis Component: The owner, John Conroe, is very pleased with the change in the business's financial position. Specifically, he noted that his equity increased. "My banker told me that as long as equity is increasing, my business is doing great." Comment.