The adjusted trial balance of Karise Repairs on December 31 follows.

Required
1. Prepare an income statement and a statement of retained earnings for the year, and a classified balance sheet at December 31. 

Note:
The Retained Earnings account balance was $23,000 on December 31 of the prior year.
2. Prepare the December 31 closing entries.

Transcribed Image Text:

No. 101 124 128 167 Account Title Cash..... Office supplies. Prepaid insurance Equipment .... 168 Accumulated depreciation-Equipment. 201 Accounts payable...... 210 307 Wages payable... Common stock... Retained earnings Dividends..... 318 319 403 Services revenue 612 623 637 640 650 690 Adjusted Trial Balance December 31 Depreciation expense-Equipment.. Wages expense. Insurance expense.. Rent expense Office supplies expense.. Utilities expense.. Totals..... Dobit $ 14,000 1,300 2,050 50,000 16,000 5,000 37,500 800 Credit $ 5,000 14,000 600 10,000 23,000 90,950 10,600 3,600 2,700 $143,550 $143,550