1 Preparing a company financial statements 2 3 Selected accounts of ABC at December 31, 2021, follow: 4 5 Insurance expense 6 Note payable, long-term 7 Other assets 8 Building 9 Prepaid insurance 10 Salary expense 11 Salary payable 12 Service revenue 13 Supplies $500 Accounts payable $22,300 $4,200 Accounts receivable $43,600 $2,000 Accumulated depreciation-building $24,200 $58,200 Common stock $16,300 $4,800 Accumulated depreciation-equipment $6,900 $17,700 Cash $6,500 $2,800 Interest payable $400 $73,000 Retained earnings, December 31, 2020 $32,700 $3,300 Equipment $23,000 14 Unearned service revenue $1,800 Depreciation expense $25,000 15 16 1. Prepare the company's income statement at December 31, 2021. 17 2. Prepare the company's statement of owner's equity at December 31, 2021. 18 3. Prepare the company's classified balance sheet in report form at December 31, 2021. 19 4. Answer these questions about the company: a. Was the result of operations for the year a profit or a loss? How much? b. How much in total economic resources does the company have as it moves into the new year? 20 21 22 23 c. How much does the company owe to creditors? 24 d. What is the dollar amount of the owner's equity in the business at the 25 end of the year?