1.Prepare an Income Statement for the year ending December 31, 2013.

2.Prepare a Statement of Changes in Equity for the year ending December 31, 2013

3.Prepare a classified Balance Sheet as at December 31, 2013.

QUESTION 2 (16 Marks) A year-end adjusted trial balance of the ledger of Joyous Accounting follows: Joyous Accounting Adjusted Trial Balance December 31, 2013 $ 5,800 $ 7,000 42,000 3,200 350,000 100,000 7,000 800 5,200 2,500 1,010,800 Accounts payable Accounts receivable Accumulated Depreciation: Building Accumulated Depreciation: Office equipment Building Cash Depreciation expense: Building Depreciation expense: Office equipment Insurance expense Interest payable Joy Jones, capital Joy Jones, withdrawals Land Note payable Office equipment Office supplies Prepaid rent Prepaid insurance Rent expense Salaries expense Salaries payable Service fees earned Unearned Service Fees 200,500 700,000 52,000 8,000 3,300 15,000 9,000 14,000 90,000 14,500 370,000 9,000 Totals $1,509.800 $1.509.800 Additional Information: $9,000 of the notes payable will become due in 2014, the remainder of the notes payable will become due in 2016. Joy Jones invested $60,000 in cash in Joyous Accounting during 2013