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
Adjusted Trial Balance
December 31
Number	Account Title	Debit	Credit
101	Cash	$ 29,000
124	Office supplies	1,000
128	Prepaid insurance	2,350
167	Equipment	51,000
168	Accumulated depreciationEquipment		$ 5,100
201	Accounts payable		12,000
210	Wages payable		800
307	Common stock		19,000
318	Retained earnings		39,000
319	Dividends	17,000
403	Services revenue		87,150
612	Depreciation expenseEquipment	5,100
623	Wages expense	38,000
637	Insurance expense	800
640	Rent expense	11,500
650	Office supplies expense	3,300
690	Utilities expense	4,000
	Totals	$ 163,050	$ 163,050

Note: Retained Earnings account balance was $39,000 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.