Santo Company’s adjusted trial balance on December 31 follows.

Required1. Prepare an income statement and a statement of owner’s equity for the year, and a classified balance sheet at December 31. The P. Santo, Capital account balance was $35,650 on December 31 of the prior year, and there were no owner investments during the current year.2. Prepare the December 31 closing entries.

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No. Account Title 101 Cash ....... 125 Store supplies...... 128 Prepaid insurance 167 Equipment. 168 Accumulated depreciation-Equipment.... 201 210 301 302 403 612 623 637 640 Adjusted Trial Balance December 31 651 690 Accounts payable.... Wages payable........ P. Santo, Capital..... P. Santo, Withdrawals... Services revenue .... Depreciation expense-Equipment... Wages expense Insurance expense. Rent expense. Store supplies expense. Utilities expense.... Totals..... wwwww Debit $ 14,450 5,140 1,200 31,000 15,000 Credit $ 8,000 1,500 2,700 35,650 54,700 2,000 26,400 600 3,600 1,200 1,960 $102,550 $102,550