Jay Field began Field Electrical Service, a new business, on January 2, 1990. After one year's operations, Jay feels the business has done a lot of work during its first year. However, the bank has begun to dishonor its checks. Its creditors are dunning it for bills it is unable to pay, and Jay just cannot understand why. Consequently, he has asked your help in determining the results of the first year's operations.

You find that the service's accounting records, such as they are, have been kept by Jay's son, who has no formal training in record-keeping. However, he has prepared for your inspection the statement of cash receipts and disbursements that follows.

There were no errors in the statement, and you learn these additional facts:
1. The lease contract for the shop space runs for five years and requires rent payments of \(\$ 375\) per month, with the first and last months' rent to be paid in advance. All required payments were made on time.
2. The repair equipment has an estimated six-year life, after which it will be valueless. It has been used a full year.
3. The service truck expense consists of \(\$ 13,800\) paid for the truck on January 2, plus \(\$ 1,670\) paid for gas and oil. Mr. Field expects to use the truck four years, after which he thinks he will get \(\$ 1,800\) for it as a trade-in on a new truck.
4. The wages expense consists of \(\$ 4,680\) paid the service's one employee who was hired on September 1, plus \(\$ 23,400\) of personal withdrawals by \(\mathrm{Mr}\). Field. Also, the one employee is owed \(\$ 150\) of earned but unpaid wages.
5. The \(\$ 1,905\) of insurance expense resulted from paying premiums on two insurance policies on January 2. One policy cost \(\$ 825\) and gave protection for one year. The other policy cost \(\$ 1,080\) for two years' protection.
6. In addition to the \(\$ 12,975\) of repair parts and supplies paid for during the year, creditors are dunning the business \(\$ 800\) for parts and supplies purchased and delivered but not paid for. Also, an inventory shows \(\$ 1,430\) of unused parts and supplies on hand.
7. Mr. Field reports that the business does most of its work for cash, but customers owe \(\$ 400\) for repair work done on credit.
Prepare an accrual basis income statement for the year, a statement of changes in owner's equity, and a classified balance sheet showing its year-end financial position.

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Receipts: Investment FIELD ELECTRICAL SERVICE Cash Receipts and Disbursements For Year Ended December 31, 1990 Received from customers for services Disbursements: Rent expense Repair equipment purchased Service truck expense Wages expense. Insurance expense. Repair parts and supplies. Bank overdraft. $18,000 53,300 $71,300 $ 4,875 8,100 15,470 28,080 1,905 12,975 71,405 $ (105)