The adjusted trial balance of Karise Repairs on December 31, 2013, follows.

Required 1. Prepare an income statement and a statement of owner’s equity for the year 2013, and a classified balance sheet at December 31,2013. There are no owner investments in 2013.

2. Enter the adjusted trial balance in the first two columns of a six-column table. Use columns three and four for closing entry information and the last two columns for a post-closing trial balance. Insert an Income Summary account as the last item in the trial balance.
3. Enter closing entry information in the six-column table and prepare journal entries for it.
Analysis Component 4. Assume for this part only that

a. None of the $800 insurance expense had expired during the year. Instead, assume it is a prepay¬ ment of the next period’s insurance protection.

b. There are no earned and unpaid wages at the end of the year. {Hint: Reverse the $600 wages pay¬ able accrual.)
Describe the financial statement changes that would result from these two assumptions

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KARISE REPAIRS Adjusted Trial Balance December 31, 2013 No. Account Title Debit Credit 101 Cash $ 14,000 124 Office supplies... 1,300 128 Prepaid insurance 2,050 167 Equipment 50,000 168 Accumulated depreciation-Equipment $ 5,000 201 Accounts payable 14,000 210 Wages payable 600 301 C. Karise, Capital 33,000 302 C. Karise, Withdrawals 16,000 401 Repair fees earned 90,950 612 Depreciation expense-Equipment. 5,000 623 Wages expense 37,500 637 Insurance expense 800 640 Rent expense 10,600 650 Office supplies expense 3,600 690 Utilities expense 2,700 Totals $143,550 $143,550