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. Credit $ 25,000 52,000 TYBALT CONSTRUCTION Adjusted Trial Balance December 31 No. Account Title Debit 101 Cash $ 6,000 104 Short-term investments 22,500 126 Supplies 8,500 128 Prepaid insurance 8,100 167 Equipment 50,000 168 Accumulated depreciation-Equipment 173 Building 156,000 174 Accumulated depreciation-Building 183 Land 63,460 201 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 10,500 404 Services revenue 406 Rent revenue 407 Dividends revenue 409 Interest revenue 606 Depreciation expense-Building 11,440 612 Depreciation expense-Equipment 7,500 623 Wages expense 32,000 633 Interest expense 4,400 637 Insurance expense 8,800 640 Rent expense 12,000 652 Supplies expense 7,000 682 Postage expense 2,800 683 Property taxes expense 3,500 684 Repairs expense 688 Telephone expense 1,900 690 Utilities expense Totals $426,900 17,500 2,900 3,500 2,600 1,000 7,700 7,500 60,000 6,000 122,300 98,000 16,000 2,100 2,800 6,600 3,900 $426,900 Oro Tybalt invested $6,000 cash in the business in exchange for common stock during the year. The Retained Earnings account balance was $122,300 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. Required 1A Required 1B Required 10 Required 2 Prepare the income statement for the current year ended December 31. TYBALT CONSTRUCTION Income Statement For Year Ended December 31 Revenues Total revenues $ 0 Expenses Total expenses 0 Required 1A Required 1B Required 1C Required 2 Prepare the statement of retained earnings for the current year ended December 31. TYBALT CONSTRUCTION Statement of Retained Earnings For Year Ended December 31 Retained earnings, Dec. 31 prior year end 0 Retained earnings, Dec. 31 current year end $ 0 Required 1A Required 1B Required 1C Required 2 Prepare the classified balance sheet at December 31. TYBALT CONSTRUCTION Balance Sheet December 31 $ 0 0 0 $ 0 0 $ 0 0 0 $ 0 Required 1A Required 1B Required 1C Required 2 Prepare the necessary closing entries at December 31 of the current year. View transaction list Journal entry worksheet 1 2 3 4 > Record the entry to close the revenue account(s). Note: Enter debits before credits. General Journal Debit Credit Date Dec 31 Record entry Clear entry View general Journal