Jaguar Auto Company provides general car maintenance to customers. The company's fiscal year-end is December 31. The December 31, 2018, trial balance (before any adjusting entries) appears below. Accounts Debits Credits Cash $ 15,500 Accounts Receivable 13,700 Supplies 20,500 Prepaid Insurance 16,200 Equipment 82,000 Accumulated $ 25,500 Depreciation Accounts Payable 10,700 Salaries Payable Utilities Payable Interest Payable Notes Payable 28,500 Common Stock 22,000 Retained Earnings 8,700 Dividends 1,700 Service Revenue 216,400 Salaries Expense 151,500 Depreciation Expense 0 Insurance Expense Supplies Expense Utilities Expense 10,700 Interest Expense 0 0 0 Totals $311,800 $ 311,800 Information necessary to prepare the year-end adjusting entries appears below. a. Depreciation on the machines for the year is $8,700. b. Employee salaries are paid every two weeks. The last pay period ended on December 23. Salaries earned from December 24 through December 31, 2018, are $2,700. c. On September 1, 2018, Jaguar borrows $28,500 from a local bank and signs a note. The note requires interest to be paid annually on August 31 at 12%. The principal is due in five years. d. On March 1, 2018, the company purchases insurance for $16,200 for a one-year policy to cover possible injury to mechanics. The entire $16,200 was debited to Prepaid Insurance at the time of the purchase. e. $3,700 of supplies remains on hand at December 31, 2018. f. On December 30, Jaguar receives a utility bill of $1,550 for the month. The bill will not be paid until early January 2019, and no entry was recorded when the bill was received. 4-a. Prepare an income statement for the year ended December 31, 2018. (Loss amount should be indicated by a minus sign.) Answer is complete and correct. JAGUAR AUTO COMPANY Income Statement For the Year Ended December 31, 2018 $ 216,400 Service revenue 0 Expenses: Salaries expense Depreciation expense Insurance expense Supplies expense Utilities expense Interest expense 000 154,200 8,700 13,500 16,800 12,250 1,140 Total expenses Net income 206,590 9,810 S 4-5. Prepare a statement of shareholders' equity for the year ended December 31, 2018. Assume that no common stock is issued during the year. (Amounts to be deducted should be indicated by a minus sign.) Answer is not complete. JAGUAR AUTO COMPANY Statement of Stockholders' Equity For the Year Ended December 31, 2018 Common Retained Stock Earnings Total Stockholders' Equity $ 30,700 Balance at January 1 S 22.000 $ 8.700 Add: Net income (9,810) Balance at December 31 S 22.000 $ 18,510 $ 20,890 4-c. Prepare a classified balance sheet for the year ended December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.) Answer is not complete. JAGUAR AUTO COMPANY Balance Sheet December 31, 2018 Assets Liabilities Current assets: Cash $ 15,500 Accounts receivable Supplies Prepaid insurance 13,700 3,700 2,700 Current liabilities: Accounts payable Salaries payable Utilities payable Interest payable $ 10,700 2,700 1,550 1,140 35,600 16,090 Total current assets Long-term assets: Equipment Accumulated depreciation Total current liabilities Long-term liabilities: Notes payable 82,000 28,500 (34,200) $ 28,500 Total liabilities Stockholders' Equity Common stock Retained earnings 22,000 22,000 Total stockholders' equity Total liabilities and stockholders' equity Total assets $ 83,400 66,590