Oro Tybalt invested $5,500 cash in the business in exchange for common stock during the year. The Retained Earnings account balance was $124,300 on December 31 of the prior year. Required: 1a. Prepare the income statement for the current year ended December 31. 1b. Prepare the statement of retained earnings for the current year ended December 31. 1c. Prepare the classified balance sheet at December 31. 2. Prepare the necessary closing entries at December 31 of the current year.

Credit $ 25,000 56,000 TYBALT CONSTRUCTION Adjusted Trial Balance December 31 No. Account Title Debit 101 Cash $ 5,500 104 Short-term investments 23,500 126 Supplies 9,100 128 Prepaid insurance 8,900 167 Equipment 50,000 168 Accumulated depreciation-Equipment 173 Building 168,000 174 Accumulated depreciation-Building 183 Land 56,980 201 Accounts payable 203 Interest payable 208 Rent payable 210 Wages payable 213 Property taxes payable 236 Unearned revenue 244 Current portion of long-term note payable 251 Long-term notes payable 307 Common stock 318 Retained earnings 319 Dividends 11,400 404 Services revenue 406 Rent revenue 407 Dividends revenue 409 Interest revenue 606 Depreciation expense-Building 12,320 612 Depreciation expense-Equipment 7,500 623 Wages expense 29,500 633 Interest expense 4,900 16,500 2,900 4,000 2,900 1,200 7,700 8,500 60,000 5,500 124,300 100,000 15,000 2,900 2,600 11,400 100,000 15,000 2,900 2,600 319 Dividends 404 Services revenue 406 Rent revenue 407 Dividends revenue 409 Interest revenue 606 Depreciation expenseBuilding 612 Depreciation expense-Equipment 623 Wages expense 633 Interest expense 637 Insurance expense 640 Rent expense 652 Supplies expense 682 Postage expense 683 Property taxes expense 684 Repairs expense 688 Telephone expense 690 Utilities expense Totals 12,320 7,500 29,500 4,900 8,700 11,800 5,600 3,300 3,100 8,000 2,800 4,100 $435,000 $435,000