Oro Tybalt invested $8,000 cash in the business in exchange for common stock during the year. The Retained Earnings account balance was $122,900 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.

The adjusted trial balance for Tybalt Construction on December 31 of the current year follows. Credit $ 20,000 60,000 TYBALT CONSTRUCTION Adjusted Trial Balance December 31 No. Account Title Debit 101 Cash $ 8,000 104 Short-term investments 23,000 126 Supplies 9,300 128 Prepaid insurance 8,400 167 Equipment 40,000 168 Accumulated depreciation-Equipment 173 Building 180,000 174 Accumulated depreciation-Building 183 Land 57,600 201 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 10,900 404 Services revenue 406 Rent revenue 407 Dividends revenue 409 Interest revenue 606 Depreciation expense-Building 13,200 612 Depreciation expense-Equipment 6,000 623 Wages expense 29,500 633 Interest expense 4,700 637 Insurance expense 9,400 640 Rent expense 11,600 652 Supplies expense 5,900 682 Postage expense 2,900 683 Property taxes expense 3,400 684 Repairs expense 8,100 688 Telephone expense 3,100 690 Utilities expense 3,600 Totals $438,600 15,000 2,200 3,200 2,300 800 7,700 8,500 63,000 8,000 122,900 103,000 17,000 2,300 2,700 $438,600