This alphabetized adjusted trial balance is for GalaVu Entertainment as of its December 31, 2020, year-end:

Use the information in the trial balance to prepare:

1. The income statement for the year ended December 31, 2020.

2. The statement of changes in equity for the year ended December 31, 2020, assuming that the owner made additional investments of $15,000 during the year.

3. The balance sheet as of December 31, 2020.

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.

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Debit Credit $ 44,000 Accounts payable. Accounts receivable. $ 18,700 Accumulated depreciation, automobiles. 69,000 Accumulated depreciation, equipment.. Advertising expense.. 20,500 9,000 Automobiles. 140,000 Cash. 11,000 Depreciation expense, automobiles Depreciation expense, equipment. 13,200 4,100 Equipment. 65,000 Revenue... 240,000 Interest income 150 3,500 Interest expense. Interest payable. 75 Interest receivable. 300 John Conroe, capital. 23,000 John Conroe, withdrawals 19,000 Land. 35,000 Long-term notes payable. 115,000 Notes receivable (due in 90 days). Office supplies.. 80,000 4,000 Office supplies expense. 13,000 automobiles Repairs expense, Salaries expense 8,400 76,225 Salaries payable. 5,500 Unearned revenue. 11,000 Wages expense 27,800 Totals . $528,225 $528,225