Problem 3-9A (Algo) Preparing financial statements and closing entries LO C2, P5, P6 The adjusted trial balance of Karise Repairs on December 31 follows. KARISE REPAIRS December 31 Adjusted Trial Balance Number 101 Cash 124 Account Title office supplies 128 167 168 201 Prepaid insurance. Equipment Accumulated depreciation-Equipment Accounts payable 210 Wages payable 307 Common stock 318 Retained earnings 319 Dividends 403 Services revenue 612 623 Wages expense 637 640 Rent expense 650 690 Depreciation expense-Equipment Insurance expense Office supplies expense Utilities expense Totals Debit Credit $ 89,000 1,000 2,550 57,000 $ 5,700 14,500 800 16,000 34,000 19,000 161,850 5,700 39,000 800 12,000 3,400 3,400 $ 232,850 $ 232,850 Note: Retained Earnings account balance was $34,000 on December 31 of the prior year. Required: 1a. Prepare an income statement for the year. 1b. Prepare a statement of retained earnings for the year. 1c. Prepare a classified balance sheet at December 31. 2. Prepare the December 31 closing entries.