P3-73B. (Learning Objectives 4: Preparing the financial statements) The adjusted trial balance of Murray Corporation at December 31, 20X6, follows:

Requirements 1. Prepare Murray’s 20X6 Income Statement, statement of changes in equity, and Balance Sheet. List expenses (except for income tax) in decreasing order on the Income Statement and show total liabilities on the Balance Sheet.

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A1 1 2 Account 3 Cash 4 Accounts receivable 5 Supplies 6 Prepaid rent 7 Equipment 8 Accumulated depreciation 9 Accounts payable 10 Interest payable 11 Unearned service revenue 12 Income tax payable 13 Note payable 14 Share capital 15 Retained earnings 16 Dividends 17 Service revenue 18 Depreciation expense 19 Salary expense 20 Rent expense 21 Interest expense 22 Insurance expense 23 Supplies expense 24 Income tax expense 25 Total 26 Murray Corporation Adjusted Trial Balance December 31, 20X6 Debit Credit 1,700 8,900 2,300 1,200 38,700 $ 4,500 3,900 500 700 2,600 18,800 8,000 4,500 25,000 103,800 1,200 40,600 10,300 3,300 3,700 2,800 7,600 $ 147,300 $ 147,300