Problem 3-6A (Algo) Preparing closing entries and financial statements LO P6, P5 The adjusted trial balance for Tybalt Construction on December 31 of the current year follows. TYBALT CONSTRUCTION Adjusted Trial Balance December 31 No. Account Title 101 Cash 104 Short-term investments 126 Supplies 128 Prepaid insurance 167 Equipment 168 Accumulated depreciation-Equipment 173 Building 174 Accumulated depreciation-Building 183 Land 201 Accounts payable 203 Interest payable Debit Credit $ 5,000 24,500 9,700 7,600 40,000 $ 20,000 168,000 56,000 58,980 16,000 2,800 208 Rent payable 210 Wages payable 213 Property taxes payable 3,100 2,400 1,100 236 Unearned revenue 244 Current portion of long-term note payable 7,700 7,000 251 Long-term notes payable 307 Common stock 318 Retained earnings 61,500 5,000 124,500 319 Dividends 404 Services revenue 406 Rent revenue 11,200 99,000 17,500 407 Dividends revenue 2,400 409 Interest revenue 2,500 606 Depreciation expense-Building 12,320 612 Depreciation expense-Equipment 6,000 623 Wages expense 32,000 633 Interest expense 4,100 637 Insurance expense 9,400 640 Rent expense 12,700 652 Supplies expense 5,900 682 Postage expense 2,800 683 Property taxes expense 3,700 684 Repairs expense 7,800 688 Telephone expense 2,300 690 Utilities expense 4,500 Totals $428,500 $428,500 Oro Tybalt invested $5,000 cash in the business in exchange for common stock during the year. The Retained Earnings account balance was $124,500 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.