The adjusted trial balance for Impressions Dance School has been provided for the year ended September 30, 2020. The new bookkeeper alphabetized the accounts.

Required

Prepare an income statement and a statement of changes in equity for the year ended September 30, 2020, plus a September 30, 2020, classified balance sheet. The owner made no investments during the year.

Analysis Component: Alisha Bjorn wants to buy a new car for the business. As her bank manager, what do you advise?

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Account Debit Credit $ 22,480 Accounts payable $ 13,300 Accounts receivable. Accumulated depreciation, automobiles. 39,160 Accumulated depreciation, building. 163,000 Alisha Bjorn, capital.. 164,960 Alisha Bjorn, withdrawals. 10,000 Automobiles 70,000 8,600 Brand name. Building. 234,000 Cash. 11,400 Copyright.. 6,700 Dance lesson revenue. 153,680 Depreciation expense, automobiles 6,900 28,200 Depreciation expense, building. 29,400 Gas, oil, and repairs expense Land. 32,700 Land for future expansion.. 48,000 Notes payable". 88,000 Rent revenue.. 20,800 Salaries expense. 172,000 Store supplies 4,180 Unearned revenue.. 23,300 $675,380 $675,380 Totals *The notes payable plus Interest are due In 18 months.