Elizabeth Soltis owns and operates Aunt Ibby's Styling Salon. A year-end work sheet is provided below. Use this information to complete this exercise. Accounts Payable Wages Payable Elizabeth Soltis, Capital Elizabeth Soltis, Drawing Styling Fees Wages Expense Rent Expense Styling Supplies Expense Phone Expense Utilities Expense Insurance Expense Depreciation Expense- Salon Equipment 225.00 2,765.00 12,000.00 32,000.00 8,000.00 6,000.00 450.00 800.00 \begin{tabular}{|l|l|} \hline & (b) 650.00 \end{tabular} (d) 900.00 $3,040.00 \begin{tabular}{|c|c|c|c|c|c|c|} \hline ADJUSTMENTS & \begin{tabular}{l} ADJUSTED TRIAL \\ BALANCE \end{tabular} & \begin{tabular}{l} ADJUSTED TRIAL \\ BALANCE \end{tabular} & \begin{tabular}{l} INCOME \\ STATEMENT \end{tabular} & \begin{tabular}{l} INCOME \\ STATEMENT \end{tabular} & BALANCE SHEET & BALANCE SHEET \\ \hline \multirow[t]{2}{*}{ CREDIT } & DEBIT & CREDIT & DEBIT & CREDIT & DEBIT & CREDIT \\ \hline & 940.00 & & & & 940.00 & \\ \hline (a) 1,450.00 & 50.00 & & & & 50.00 & \\ \hline \multirow[t]{2}{*}{ (b) 650.00} & 150.00 & & & & 150.00 & - \\ \hline & 4,500.00 & & ! & & 4,500.00 & \\ \hline \multirow[t]{2}{*}{ (d) 900.00} & & 900.00 & & & & 900.00 \\ \hline & & 225.00 & & & & 225.00 \\ \hline \multirow[t]{6}{*}{ (c) 40.00} & & 40.00 & & & & 40.00 \\ \hline & & 2,765.00 & & & & 2,765.00 \\ \hline & 12,000.00 & & & & 12,000.00 & \\ \hline & & 32,000.00 & & 32,000.00 & & \\ \hline & 8,040.00 & & 8,040.00 & & & \\ \hline & 6,000.00 & ? & 6,000.00 & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline & & & 225.00 & & & & 225.00 \\ \hline & (c) 40.00 & & 40.00 & & & . & 40.00 \\ \hline & & & 2,765.00 & & & & 2,765.00 \\ \hline & & 12,000.00 & & & & 12,000.00 & \\ \hline & & & 32,000.00 & & 32,000.00 & & \\ \hline \multirow[t]{2}{*}{ (c) 40.00} & & 8,040.00 & & 8,040.00 & & & \\ \hline & & 6,000.00 & & 6,000.00 & & & \\ \hline \multirow[t]{3}{*}{ (a) 1,450.00} & & 1,450.00 & & 1,450.00 & & & \\ \hline & & 450.00 & & 450.00 & . & & \\ \hline & & 800.00 & & 800.00 & & & \\ \hline (b) 650.00 & & 650.00 & & 650.00 & & & \\ \hline (d) 900.00 & & 900.00 & & 900.00 & & & \\ \hline \multirow[t]{3}{*}{$3,040.00} & $3,040.00 & $35,930.00 & $35,930.00 & 18,290.00 & 32,000.00 & 17,640.00 & 3,930.00 \\ \hline & & & & 13,710.00 & & & 13,710.00 \\ \hline & & & & $32,000.00 & $32,000.00 & $17,640.00 & $17,640.00 \\ \hline \end{tabular} Required: 1. Prepare adjusting entries and closing entries. 2. Prepare an income statement. 3. Prepare the statement of owner's equity. Soltis made no additional investments during the year. 4. Prepare the balance sheet. 1. Prepare adjusting entries and closing entries. General Journal Instructions General Journal 2. Prepare an income statement. Income Statement Instructions Income Statement For The Year Ended Dec, 31 \begin{tabular}{|c|c|c|c|} \hline 1R & Revenue: & & \\ \hline 2 & Styling Fees & & $32,000.00 \\ \hline 3 & Less:Expenses:: & & \\ \hline 4 & Wages Expense & $8,040.00 & \\ \hline 5 & Rent Expense & 6,000.00 & \\ \hline 6 & stylling supplies expense & 1,450.00 & \\ \hline 7 & Phone Expense & 450.00 & \\ \hline 8 & Utilities Expense & 800.00 & \\ \hline 9 & Insurance Expense & 650.00 & \\ \hline 10 & 0 Depreciation Expense-Salon equipment & 900.00 & \\ \hline & Total Expenses & & 18,290.00 \\ \hline & 12 Net Income & & $13,710.00 \\ \hline \end{tabular} 3. Prepare the statement of owner's equity. Soltis made no additional investments during the year. Statement of Owner's Equity Instructions 4. Prepare the balance sheet. Balance Sheet Instructions \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ Balance Sheet } \\ \hline 5 & Prepaid Insurance & 150.00 & \\ \hline 6 & Total Current Assets & & $1,140.00 \\ \hline 7 & Property, plant and equipment: & & \\ \hline 8 & Salon Equipment & $4,500.00 & \\ \hline 9 & Less: Accummulated Depriciation, Salon Equipment & 900.00 & 3,600.00 \\ \hline 10 & Total Assets & & $4,740.00 \\ \hline 11 & Liabilities & & \\ \hline 12 & Liabilites: & & \\ \hline 13 & Accounts Payable & $225.00 & \\ \hline 14 & Wages Payable & 40.00 & \\ \hline 15 & Total Liabilities & & $265.00 \\ \hline 16 & Owner's Equity & & \\ \hline 17 & Total Owner's Equity & & 4,475.00 \\ \hline 18 & Total Liabilities and Owner's Equity & & $4,740.00 \\ \hline \end{tabular}