Problem 3-13A Preparing financial statements from the adjusted trial balance LO7 CHECK FIGURES: a. Profit = $84,925;c. Total assets = $264,500 This alphabetized adjusted trial balance is for GalaVu Entertainment as of its December 31, 2020, year-end: Debit Credit Accounts payable $ 44,000 Accounts receivable $ 18,700 Accumulated depreciation, automobiles..... 69,000 Accumulated depreciation, equipment........ 20,500 Advertising expense... 9.000 Automobiles. 140,000 Cash.. 11.000 Depreciation expense, automobiles 13,200 Depreciation expense, equipment 4.100 Equipment.............. 65.000 Revenue 240,000 Interest income 150 Interest expense 3.500 Interest payable 75 Interest receivable 300 John Conroe, capital 23,000 John Conroe, withdrawals 19.000 Land... 35,000 Long-term notes payable 115,000 Notes receivable (due in 90 days). 80,000 Office supplies 4,000 Office supplies expense. 13,000 Repairs expense, automobiles 8,400 Salaries expense... 76,225 Salaries payable 5,500 Unearned revenue 11,000 Wages expense 27,800 Totals.... $528,225 $528,225 215 Required Use the information in the trial balance to prepare: 1. The income statement for the year ended December 31, 2020. 2. The statement of changes in equity for the year ended December 31, 2020, assuming that the owner made additional investments of $15,000 during the year. 3. The balance sheet as of December 31, 2020. Analysis Component: The owner, John Conroe, is very pleased with the change in the business's financial position. Specifically, he noted that his equity increased. "My banker told me that as long as equity is increas- ing, my business is doing great." Comment